Chapter 6 Review

A sole proprietorship must be chartered by the state in which it is located.

• True
• False

A partnership is owned by two or more people who own shares of stock in the company.

• True
• False

Goals must be set in order to perform the management activity of controlling.

• True
• False

Franchises can be operated only as sole proprietorships or partnerships.

• True
• False

The person or group who receives a franchise is called the franchisee.

• True
• False

People who become part owners of a corporation are called

• partners
• special owners
• shareholders
• cooperative owners

The part of the profits that are paid to shareholders is called

• excess profit
• surplus
• a dividend
• none of the above

The management activity that occurs when management asks the questions, "Did the business accomplish what it was supposed to accomplish?" is called

• planning
• organizing
• staffing
• controlling

The process of determining responsibilities and deciding how they will be divided falls under this management activity

• planning
• organizing
• staffing
• leading

A shareholders piece of the corporations profits is called a

• dividend
• return on investment
• salary
• franchise