ETH321T WEEK 2 ACTUAL QUESTIONS AND VERIFIED

ETH/321T WEEK 2 (ACTUAL / ) QUESTIONS AND VERIFIED

CORRECT ANSWER

Hal and Miranda have a general partnership business for landscaping projects. Hal makes a contract with a customer for a project one day while Miranda is absent and leaves on vacation the next day. Miranda does not feel she has the time to perform the contract for the customer.Which of the following is true?Miranda is obligated to perform the contract.

Mario and Johnny want to start a business. They have very little capital.They are new partners and largely unfamiliar with each other's management practices. They are happy, however, to be organizing a business together in order to avoid full liability for the business. Which detail of this situation is a good reason for Mario and Johnny to create a general partnership?Little capital

What is the appropriate description for a chain-style franchise?A franchisee produces and sells a franchisor's product using the franchisor's name.

Abigail is a manager at her company. The company just launched an initiative to improve its corporate citizenship practices. Abigail is responsible for all but which of the following areas?Vigilance of the board of directors

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Loptech, a technology firm, wants to issue bonds for investment purposes. Loptech has one of the best credit ratings in the industry.Market rates for debt instruments average at .5% interest. Based on its credit rating, Loptech would likely sell bonds that pay _____.

0.25%

We have an expert-written solution to this problem!What is the appropriate description for a distributorship?

: A franchisee sells a franchisor's product in a specific geographic area.

Which of the following roles best fits the situation?Apol wants to start or join a business but is not sure which business organization would be best. She has a large amount of capital but does not yet have any partners who can invest in or effectively manage the business.Neither a limited or general partner would be a good choice.

What role best fits the following situation?Manny wants to be involved in a business but is not sure which type of business to join or create. He has capital to invest. He has a good network of potential investors and partners. He has no experience in management.

ANS: Limited partner in a limited partnership.

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