1.

The ____ of a limited liability company establishes the company's method of management, allocation of profits and losses among members, restrictions on the transfer of membership interests, and the process to be followed in dissolving the company.

	a.	management agreement
	b.	operating agreement
	c.	charter
	d.	licensing agreement
	e.	articles of operation 2. Parent franchise companies may limit the territory in which a franchisee operates. True False

3.

A shareholder of a corporation may not also be a creditor to the company, as there would be a conflict of interest.

True

False

4.

In Japan small businesses are:

	a.	formed at a much faster rate than in the United States
	b.	discriminated against by government policy
	c.	considered very desirable places to work
	d.	exempt from most taxes
	e.	greatly favored by the government