Question 1

The purpose of a farm cooperative is to:

Accepted Answer

A)   give members more economic power as a group than they would have as individuals.
B)   give each farm an equal share in the running of the cooperative.
C)   equalize the members' standard of living.
D)   allow socialism a foothold in the U.S.E) B) and C)
F) A) and D)

Question 2

In a typical franchise agreement, the franchisor pays the franchisee a fee to manage its company, and the two of them split the profits based on the percentages established in the agreement.

Accepted Answer

A) True 
 B)False

Question 3

In a cooperative, members/customers:

Accepted Answer

A)   democratically control their businesses by electing a board of directors.
B)   are known as limited partners.
C)   each have unlimited liability for the debts of the firm.
D)   take turns serving on the board that manages the company.E) A) and B)
F) All of the above

Question 4

Unlimited liability means:

Accepted Answer

A)   when you own your own business you are responsible for all the business debts.
B)   you are only liable for the money you invest in the business.
C)   as a franchisee your franchisor is responsible for the debts of the franchise.
D)   you are liable for whatever advertising promises your firm makes.E) C) and D)
F) B) and C)

Question 5

Zach and Mac own an auto repair business that they operate as co-owners. Both take an active role in the management of the business, and each accepts unlimited liability. Zach and Mac operate as a __________.

Accepted Answer

A)   joint venture
B)   general partnership
C)   limited partnership
D)   cooperativeE) B) and D)
F) None of the above

Question 6

It is not unusual for members of cooperatives to work for and help manage their cooperative.

Accepted Answer

A) True 
 B)False

Question 7

A cooperative is simply another name for a corporation.

Accepted Answer

A) True 
 B)False

Exam 5: How to Form a Business

A cooperative is simply another name for a corporation.

Correct Answer
verified

The purpose of a farm cooperative is to:

Correct Answer
verified

It is not unusual for members of cooperatives to work for and help manage their cooperative.

Correct Answer
verified

In a cooperative, members/customers:

Correct Answer
verified

In a typical franchise agreement, the franchisor pays the franchisee a fee to manage its company, and the two of them split the profits based on the percentages established in the agreement.

Correct Answer
verified

Zach and Mac own an auto repair business that they operate as co-owners. Both take an active role in the management of the business, and each accepts unlimited liability. Zach and Mac operate as a __________.

Correct Answer
verified

Unlimited liability means:

Correct Answer
verified

Exam 5: How to Form a Business

A cooperative is simply another name for a corporation.

Correct AnswerverifiedShow Answer

The purpose of a farm cooperative is to:

Correct AnswerverifiedShow Answer

It is not unusual for members of cooperatives to work for and help manage their cooperative.

Correct AnswerverifiedShow Answer

In a cooperative, members/customers:

Correct AnswerverifiedShow Answer

In a typical franchise agreement, the franchisor pays the franchisee a fee to manage its company, and the two of them split the profits based on the percentages established in the agreement.

Correct AnswerverifiedShow Answer

Zach and Mac own an auto repair business that they operate as co-owners. Both take an active role in the management of the business, and each accepts unlimited liability. Zach and Mac operate as a __________.

Correct AnswerverifiedShow Answer

Unlimited liability means:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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