1. Mark all that are advantages to buying a franchise. (Check all that apply)

A. Choice in packaging

B. Limited resources needed

C. Financial assistance

D. Connection to company who has something go wrong

E. Supervision and consulting

2. Mark all shareholders rights (Check all that apply)

A. Right to transfer shares of stock

B. Right to receive dividends

C. Right to be sued by others

D. Right to receive corporate financial statements

D. Right to buy materials for the buisness

3. Which is NOT a disadvantage of a sole proprietorship?

A. Limited Human Resources

B. Unlimited Capital

C. Unlimited liability

D. Limited Lifetime

4. What is it called when the business owner is responsible for all losses experienced by the business?

A. Limited lifetime

B. Unlimited liability

C. Limited Human resources

D. Limited capital

5. Merger is when two or more companies join to form a new company.

True or False

6. A franchisee has no control/say over all of the following except

A. Products they sell

B. Brand recognition

C. Who they hired

D. Advertising

7. A person may share profit but not be able to claim partnership for all of the following reasons except:

A. Annuity to widow of partner

B. Repayment of debt

C. Partner paid money to start buisness

D. Paid interest on loan

8. All of the following are reasons the secretary of state may bring a quo warranto action except

A. Formed fraudulent business

B. Failure to pay taxes

C. Failure to file annual reports

D. Not paying dividends when there was no profit

9. All are rights of someone who owns preferred stock except

A. Fixed dividends

B. No liability beyond share value

C. Receive dividends before common stockholders

D. Right to vote on company business

10. Mark all disadvantages to a corporation (Check all that apply)

A. Shareholder's liability limited to money paid for shares

B. Extensive Government Regulations

C. Unlimited business life

D. Income may be taxed more than once

E. Original owner loses control of the business

11. Which is not a part of the Articles of Partnership?

A. Planned duration of business

B. Numbers of employees

C. Provisions regarding sales, withdrawals and profits

D. Parties to the agreement

12. All are reasons a franchisor could cancel a franchise agreement except

A. Franchisee had low sales revenue

B. Defrauding the company

C. Brand name is being damaged

D. Franchisee declared bankruptcy