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What is the appropriate description for a plant processing franchise

11/10/2021 Client: muhammad11 Deadline: 2 Day

ETH321T Week 2 Apply Exercise SCORE 80 PERCENT

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Which of the following roles best fits the situation?
Apol wants to start or join a business but is not sure which business organization would be best. She has a large amount of capital but does not yet have any partners who can invest in or effectively manage the business.

o Neither a limited or general partner would be a good choice (Not sure if this is correct).

o General partner in a limited partnership.

o Limited partner in a limited partnership.

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0 / 6 (0.0%)

What is the appropriate description for a plant-processing franchise?

o A franchisee makes or sells a franchisor’s product.

o A franchisee produces and sells a franchisor’s product using the franchisor’s name.

o A franchisee sells a franchisor’s product in a specific geographic area.

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6 / 6 (100.0%)

Hal and Miranda have a general partnership business for landscaping projects. Hal makes a contract with a customer for a project one day while Miranda is absent and leaves on vacation the next day. Miranda does not feel she has the time to perform the contract for the customer. Which of the following is true?

o Miranda may relinquish her obligation to perform the contract since Hal signed it without her knowledge.

o Miranda is obligated to perform the contract.

o Indeterminable without more information.

o Only Hal is obligated to perform the contract.

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6 / 6 (100.0%)

Hal organized his business in Canada. Most of his customers are in Montana. In Montana, Hal’s business would be considered a(n) __________ corporation.

o Closely-held

o Subchapter S

o Domestic

o Alien

o Professional

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6 / 6 (100.0%)

What is the appropriate description for a chain-style franchise?

o A franchisee makes or sells a franchisor’s product.

o A franchisee sells a franchisor’s product in a specific geographic area.

o A franchisee produces and sells a franchisor’s product using the franchisor’s name.

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6 / 6 (100.0%)

Zoey is the CEO of a corporation she organized herself, and the corporation has 15 shareholders. The company operates in several states, as well as outside of the U.S. Her business consists mostly of training services for in-home medical care personnel. Her company would be a __________ corporation.

o Professional

o Alien

o Subchapter S

o Closely-held

o Domestic

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6 / 6 (100.0%)

Which of the following roles best fits the situation?
Kevin wants to create a business but is not sure what role is best for him. He has capital to invest. He has several partners with which he can begin a business. He has the most management experience of all his potential partners.

o Limited partner in a limited partnership.

o General partner in a limited partnership.

o Neither a limited or general partner would be a good choice.

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6 / 6 (100.0%)

Rita wants to be involved in business. She has a fair amount of money to invest, but she does not want to be involved in management. She wants to form a business in the quickest way possible under her circumstances. Which form of business would be best for Rita?

o Corporation

o Sole proprietorship

o LLC

o Limited partnership

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6 / 6 (100.0%)

Koffman Corporation is trying to raise capital. What method would be the least risky to raise capital if it has a less-than-favorable credit rating?

o Stock issuance, since stocks are more valuable as finance instruments.

o Stock issuance, since a credit rating won’t negatively affect Koffman’s ability to sell stock.

o Bond issuance, since additional debt can provide the company with more leverage.

o Bond issuance, since nobody wants to buy shares of a company with a less-than-perfect credit rating.

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What is the appropriate description for a distributorship?

o A franchisee sells a franchisor’s product in a specific geographic area.

o A franchisee produces and sells a franchisor’s product using the franchisor’s name.

o A franchisee makes or sells a franchisor’s product.

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6 / 6 (100.0%)

Kara wants to build a business. She has plenty of capital and potential investors and partners. She wants to avoid the burden of sole liability for her business and wants to be able to close the business when she is no longer interested in it. Which of the following would lead Kara to choose a sole proprietorship organization for her business?

o Ability to close the business easily

o Many potential investors/partners

o Plenty of capital

o Avoidance of sole liability

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6 / 6 (100.0%)

Juan wants to be involved in business. He has plenty of capital to invest, but he does not want to be involved in management. He also does not want to worry about fluctuations in the market prices of debt and equity instruments. Which form of business would be best for Juan?

o Corporation

o LLC

o General partnership

o Sole proprietorship

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6 / 6 (100.0%)

Noodleoo, a struggling restaurant chain, wants to enact a franchise agreement with Stephen to sell its product through a chain-style franchise. Stephen agrees and opens the store, and 6 months later Noodleoo goes bankrupt. Which is most likely true of this situation?

o If Noodleoo was transparent with its financial data, it owes no recompense to Stephen.

o If Noodleoo was not transparent with its financial data, it has broken the franchise rule.

o If Noodleoo was not transparent with its financial data, Stephen has no recourse.

o More than one response is correct.

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6 / 6 (100.0%)

Lily wants to build a business. She has very little capital. She does, however, have a partner with which she could run a business. Lily wants to be able to avoid being held personally liable for any problems the business has. Which of the following would lead Lily to choose a sole proprietorship organization for her business?

o None of the above

o Little capital(I think this should be correct)

o Avoidance of personal liability

o Possession of a partner

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Sole proprietorships are the cheapest business organization to form.

Sandy works for RigorMart. She supervises regional managers and directs them based on orders from the board of directors. Sandy’s position also entitles her to stock ownership in the company. What is Sandy’s position in the company?

o Executive, shareholder, and director

o Executive and shareholder

o Executive

o Shareholder

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6 / 6 (100.0%)

What is the correct order of events for the formation of a corporation?

o Business selects a state of incorporation; Incorporators select a name for the corporation; Articles of incorporation are filed; Novations are executed

o Incorporators select a name for the corporation; Articles of incorporation are filed; Business selects a state of incorporation; Novations are executed

o Novations are executed; Articles of incorporation are filed; Incorporators select a name for the corporation; Business selects a state of incorporation

o Business selects a state of incorporation; Novations are executed; Incorporators select a name for the corporation; Articles of incorporation are filed

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6 / 6 (100.0%)

Tucker works for a retail distribution company that was recently started. Tucker has invested a lot of his earnings into shares of the company. When quarterly earnings are posted, Tucker receives a check for 8% of the quarterly profit of the company. Tucker belongs to a __________ corporation.

o Subchapter S

o Domestic

o Professional

o Alien

o Closely-held

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0 / 6 (0.0%)

Mario and Johnny want to start a business. They have very little capital. They are new partners and largely unfamiliar with each other’s management practices. They are happy, however, to be organizing a business together in order to avoid full liability for the business. Which detail(s) of this situation would be the largest contributor toward Mario and Johnny's decision to organize a general partnership?

o Sharing profits

o Avoiding full liability

o Unfamiliar with each other’s management practices

o Little capital

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Lenny organized his business in Delaware. He has customers in Delaware, other states in the U.S., and in foreign countries. Lenny’s business is __________ in Delaware.

o Subchapter S

o Closely-held

o Professional

o Alien

o Domestic

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6 / 6 (100.0%)

Cadence works for WilderCorp. She meets with a team to make all-encompassing decisions concerning the direction of the business. She also personally supervises managers and conducts training for supervisors and plant managers. Cadence also buys stock in WilderCorp. What is Cadence’s position in the company?

o Shareholder

o More than one option

o Executive

o Director

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6 / 6 (100.0%)

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