Exam 19: The Entrepreneurs Options

Fong contracts to buy a franchise from Genuine Asian Sushi House Company. Typically, the determination of the territory to be served is made by

All of the following are reasons a franchisor may wish to maintain some degree of control and supervision over the franchisee, except

State deceptive trade practices acts may apply to actions by franchisors.

A partner may pursue his or her own interests so long as his or her actions do not violate the duty of loyalty or care to the partnership.

Oliana is a partner in Pacific Traders. In the majority of states, with respect to any partnership obligations that Oliana does not participate in, know about, or ratify, Oliana would be liable for

Tax Accounting, LLC, is a member-managed limited liability company. If the law in Tax Accounting's state is like the law in most states, unless the members have agreed otherwise, decisions are made according to

Corbin organized, and owns and operates, Corbin's Deep Sea Fishing Tours in the simplest form of business organization. This is

StartUp Investors, LLC, is a limited liability company without a written operating agreement. Among the members, a dispute arises concerning the division of profits. Under most LLC statutes, the profits will be

Members of a limited liability company can stipulate in their operating agreement provisions relating to dissolution.

A partner always has the power but he or she may not have the right to dissociate from the partnership.

Like the shareholders of a corporation, the owners of a limited liability company enjoy limited liability.

Limited liability companies are entities apart from their owners.

Rural Residential Development Company and Suburban Real Estate Corporation form a joint stock company. The longest duration a joint stock company can be formed for is

Riki, the owner of Simply Sushi, is a sole proprietor. What are the chief characteristics, advantages, and disadvantages of this form of business organization? Riki wants to obtain additional capital to expand Simply Sushi, but she does not want to lose control of the firm. As a sole proprietor, what is her best option to attain these goals?

Graham buys from Hook, Line & Sinker Corporation the exclusive right to sell Hook, Line & Sinker fishing gear in a certain area. Their franchise agreement requires Graham to pay certain administrative expenses. Their agreement may also require Graham to pay a percentage of the franchisor's

Traditionally, the three major forms entrepreneurs have used to structure their business enterprises are the sole proprietorship, partnership and corporation.

Colin, Demi, and Erin agree to be partners in Fajita Pizza, splitting the profits equally. Colin contributes 65 percent of the capital. When Fajita Pizza is dissolved, its liabilities are greater than its assets. In the absence of a contrary agreement, the losses are paid by

Generally, if a member dissociates form a limited liability company (LLC), the other members cannot continue to carry on the LLC's business.

Custom Auto Body & Detailing, LLC, is a limited liability company. Its members include Dennis and Estelle. Like other LLCs with more than one member, unless indicated otherwise, the firm will automatically be taxed as

​Nora and Owen do business as Profit & Property, a real estate investment partnership. In acting on the firm's behalf in a deal with Quaint Village Mall, Nora takes advantage of an opportunity to make a secret profit on her own behalf. To her firm, Nora is liable for