BLAW 3391 Pleasant Exam 2 Questions With Verified Answers

BLAW 3391 Pleasant Exam 2 Questions With Verified Answers Entrepreneur - answerOne who initiates and assumes the financial risk of a new business enterprise and undertakes to provide or control its management Sole Proprietorship - answerThe simplest form of business organization, in which the owner reports business income on his or her personal income tax return and is legally responsible for all debts and obligations incurred by the business. Sole Proprietorship in TX - answerYou can establish without filing any legal documents. 1) choose a Business name 2) file an assumed business name w/ County Clerk 3) obtain licenses, permits, and zoning clearance. 4) Obtain an Employee identification # from IRS website Franchise - answerAny arrangement in which the owner of a trademark, trade name, or copyright licenses another to use that trademark, trade name, or copyright in the selling of goods and services (expensive!!!) Franchisee - answerOne receiving a license to use another's (the franchisor's) trademark, trade name, or copyright in the selling of goods or services Franchisor - answerOne licensing another (the franchisee) to use the owners trademark, trade name, or copyright in the selling of goods or services Types of Franchises - answer1) Distributorship- Black Snow Beer Company (licensed to distribute/sell) 2) Chain-Style Business Operation- McDonald's (trade name) 3) Manufacturing or Processing Plant- Pepsi Cola (essential ingredients) Laws Governing Franchises - answer1) Federal Regulation Of Franchising - contract law - the uuc -industry specific standards -the franchise rule 2) Stare Regulation of Franchising -state Disclosures -requirements for Termination -Case EX. Inc v. Volvo. More on the FEDERAL REGULATION OF FRANCHISING - answer• Contract law - the franchise relationship is defined by a contract between franchisor and franchisee • The UUC - Article 2 • Industry Specific Standards - laws enacted by congress to protect franchisees • The Franchise Rule - requires franchisers to disclose certain material facts that a franchisee needs to know Partnership - answerAn agreement by two or more persons to carry on, as co-owners, a business for profit. Each partner has Unlimited liability. Partners together have joint and several liability. Taxed as a pass through entity. The Uniform Partnership Act (UPA) (not uniform) - answerGoverns the operation of partnerships in the absence of an expressed agreement. Does a partnership exist? - answer1) sharing of profits 2) a joint ownership 3) equal right to be involved in management Pass-Through Entity (taxed) - answerA business entity that has no tax liability. The entity's income is passed through to the owners, and