Ent U 1 Chap 1

Which of the following may be considered an activity that falls under the corporate social responsibility of a lumber company?

• Cash donation toward reforestation

• Supporting company fun-day celebrations

• Increasing workers' salaries and wages

• Spearheading the growth of the company

When and existing company grants a license to another company to operate using the former's name and design to provide the same service, the arrangement is called.

• a franchise

• a partnership

• an undertaking

• limited liability

Which of the following types of business has unlimited life and allows for the easy transferability of ownership interest?

• Partnership

• Corporation

• Sole proprietorship

• Limited liability partnership

In a partnership venture, the partner share the management, profits and debts of their business based on the terms of their

• Friendship or relationship

• Capital contribution

• Deed of partnership

• By law

In which of the following ventures does the entrepreneur face the LEAST risk?

• Sole trading

• Partnership

• State enterprise

• Limited liability company

One advantage of the franchise approach to business is that the entrepreneur gets more

• Profit

• Guidance

• Capital

• Partners

Reduced profits due to payment of royalty fees can be a major DISADVANATAGE of this type of venture.

• Franchise

• Sole trader

• Private company

• state-owned enterprise

If a business is listed on the stock exchange it is a

• private company

• limited partnership

• limited liability company

• nongovernmental organization

Which of the following are characteristics of limited liability companies?

I. They have unlimited liability.

II. They are separate legal entity.

III. Taxes paid are base on profits

• I and II only

• I and III only

• II and III only

• I, II and II

A major disadvantage of BOTH general partnerships and sole trading organizations is the

• complex formation requirements

• limited pool of talent available

• unlimited liability of owners

• limited liability of owners