1. The simplest form of business is: a. a partnership. b. a joint venture. c. a sole proprietorship. d. a corporation. 2. An example of a distributorship franchise would be which of the following? a. A Honda Dealership. b. A McDonald's restaurant. c. A Lowe's movie complex. d. A Gap store. 3. It is common for a first-time franchise agreement to state that the franchise will last for: a. five years. b. one year. c. one month. d. indefinitely. 4. The major disadvantage of a sole proprietorship is: a. the proprietor is taxed as a limited liability corporation. b. the proprietor receives all profits. c. the proprietor undertakes limited liabilities. d. the proprietor bears the burden of all losses. 5. In most states, what governs the operation of partnerships when there is no express agreement? a. The UCC. b. The UPA. c. The FTC. d. The PCA