Question 1

The Federal Trade Commission requires franchisors to

Accepted Answer

A)   give prospective franchisees a franchise disclosure document at least 14 business days prior to the signing of a contract or payment of any money.
B)   give prospective franchisees earnings information on the company.
C)   disclose any litigation the company has ever been involved in.
D)   let prospective franchisees know how many franchisees have gone out of business in the prior five years.E) A) and C)
F) None of the above

Question 2

What is a joint venture? Briefly explain the tax and liability implications of a joint venture.

Accepted Answer

A joint venture is a partnership for a l...

Question 3

Debra wanted to form a partnership with Lawrence. He agreed and they became co-owners in an equal partnership. This year, after expenses, the partnership had a profit of $200,000. How will the taxation of this profit be handled?

Accepted Answer

A)   Since the partnership was Debra's idea, she will pay income tax on the profit on her personal tax return.
B)   The business will pay half of the tax liability, and Debra and Lawrence will pay the other half.
C)   Debra and Lawrence must both pay tax on the business's profit.
D)   The business itself will pay the taxes on the business's profit.E) A) and B)
F) A) and C)

Question 4

When a partner leaves the partnership, whether it be voluntary or by expulsion, death or bankruptcy, it is called

Accepted Answer

A)   dissociation.
B)   termination.
C)   detachment.
D)   separation.E) B) and D)
F) C) and D)

Question 5

Harold and Zack have pooled their money together to buy real estate but have filed no formal papers to form a business. Harold, a lawyer, handles all the legal matters and Zack, a real estate broker, finds buyers for the property they have subdivided. Harold and Zack are engaged in a

Accepted Answer

A)   partnership.
B)   close corporation.
C)   limited liability company.
D)   professional corporation.E) B) and C)
F) A) and C)

Exam 31: Starting a Business: Llcs and Other Options

The Federal Trade Commission requires franchisors to

Correct Answer
verified

What is a joint venture? Briefly explain the tax and liability implications of a joint venture.

Correct Answer
verified
A joint venture is a partnership for a l...
View Answer

When a partner leaves the partnership, whether it be voluntary or by expulsion, death or bankruptcy, it is called

Correct Answer
verified

Debra wanted to form a partnership with Lawrence. He agreed and they became co-owners in an equal partnership. This year, after expenses, the partnership had a profit of $200,000. How will the taxation of this profit be handled?

Correct Answer
verified

Harold and Zack have pooled their money together to buy real estate but have filed no formal papers to form a business. Harold, a lawyer, handles all the legal matters and Zack, a real estate broker, finds buyers for the property they have subdivided. Harold and Zack are engaged in a

Correct Answer
verified

Exam 31: Starting a Business: Llcs and Other Options

The Federal Trade Commission requires franchisors to

Correct AnswerverifiedShow Answer

What is a joint venture? Briefly explain the tax and liability implications of a joint venture.

Correct AnswerverifiedA joint venture is a partnership for a l...View AnswerShow Answer

When a partner leaves the partnership, whether it be voluntary or by expulsion, death or bankruptcy, it is called

Correct AnswerverifiedShow Answer

Debra wanted to form a partnership with Lawrence. He agreed and they became co-owners in an equal partnership. This year, after expenses, the partnership had a profit of $200,000. How will the taxation of this profit be handled?

Correct AnswerverifiedShow Answer

Harold and Zack have pooled their money together to buy real estate but have filed no formal papers to form a business. Harold, a lawyer, handles all the legal matters and Zack, a real estate broker, finds buyers for the property they have subdivided. Harold and Zack are engaged in a

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
A joint venture is a partnership for a l...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified