Ch 8

A sole proprietorship is a type of business where no more than two people own the business.

• true

• false

A partnership is a type of business in which two or more people own the business.

• true

• false

Corporation shareholders have limited liability.

• true

• false

Subchapter S corporations are taxed like partnerships.

• true

• false

A multinational corporation only operates in one country.

• true

• false

__________ exporting occurs when a company exports its own goods.

• indirect

• direct

Licensing agreements transfer the rights and grants permission to produce and sell products by another firm for a fee or royalty.

• true

• false

Which of the following are examples of franchises (select all the apply)?

• McDonald

• Holiday Inn

• PNC

• NP

An example of a strategic alliance is Ford and Eddie Bauer.

• true

• false

When a multinational corporation fully owns a company in another country, the company in the host country is called a "wholly owned subsidiary."

• true

• false