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1. Identify an accurate statement about a sole proprietorship. 2. Sara and Cilia run a cafĂŠ together. They share ownership of and liability for the cafĂŠ and have come to an agreement about how the profits from the cafe should be divided between them. If the cafe runs into debt, both Sara and Celia are responsible for the debt. What form of business is best demonstrated in this scenario? 3. What criterion under the Uniform Partnership Act (UPA) must be met by a business, for it to qualify as a general partnership? 4. What is true about a limited partnership? 5. Who among the following is most likely to be a limited partner in a limited partnership? 6. Who has unlimited liability for the debts and obligations of limited partnerships? 7.


What is a characteristic of a corporation?

8. Identify the type of corporations in which there are thousands of shareholders and the shares are traded on national stock exchanges. 9. Alpha Corp. has very few shareholders and all of the shareholders belong to a single family. The shareholders are involved in the operations of the business and frequently make management decisions. What type of corporation does Alpha Corp. best represent? 10. Identify the true statement about limited liability companies. 11. What is true about the formation of limited liability companies? 12. Delta Group is a business firm created by a team of doctors. The business was formed as per the state's laws and is not taxed as a separate entity. The owners of the business are not personally liable for the losses, debts, and obligations of the firm. Identify the business form that is best illustrated in the scenario.

13. Nutristar is a soft drink manufacturing company that wishes to expand its business. The company has licensed another firm to manufacture its soft drinks and provided the firm with the necessary confidential information about manufacturing. The licensed company manufactures the soft drinks and distributes them. What type of franchise is best illustrated in this scenario?


Law 531 week 1 knowledge check (new)