Question 1

Which of the following is not a pertinent question in deciding whether to expand a business internationally?

Accepted Answer

The Privileges and Immunities Clause of the U.S. Constitution applies only to individual citizens, not businesses, and therefore is not a pertinent question in deciding whether to expand a business internationally. The other three questions are important considerations in the decision-making process.

Question 2

Targeted franchising is a form of licensing in which franchisees in the targeted countries are allowed to use the franchisor's name in exchange for a percentage of the gross profits.

Accepted Answer

The answer of Targeted franchising is a form of licensing...

Question 3

A joint stock company is treated as a partnership because its members own shares that are nontransferable.

Accepted Answer

A joint stock company is treated as a corporation, not a partnership, because its members own transferable shares.

Question 4

franchising is a form of licensing in which franchisees in the targeted countries are allowed to use the franchisor's name in exchange for a percentage of the gross profits.

Accepted Answer

Franchising is a form of licensing that involves international expansion, as franchisees in targeted countries are granted permission to use the franchisor's name in exchange for a percentage of the gross profits. Therefore, the correct choice is "International." The other options, profit-sharing and targeted, do not accurately describe the nature of franchising. Multinational could potentially apply, but it is not as specific or accurate as international.

Question 5

Discuss the terms of a franchise agreement.

Accepted Answer

The answer of Discuss the terms of a franchise agreement....

Question 6

A disadvantage of a syndicate is that it cannot raise large amounts of capital quickly.

Accepted Answer

A syndicate, which is a temporary alliance of businesses or investors, can pool resources to raise large amounts of capital quickly, which is one of its advantages.

Question 7

The Franchise Rule promulgated by the Federal Trade Commission requires a franchisor to disclose all material facts to a franchisee before entering into a franchise agreement.

Accepted Answer

The Franchise Rule does require a franchisor to disclose all material facts to a franchisee before entering into a franchise agreement.

Question 8

The increase in of manufacturing jobs brought into focus a dilemma for private- and public-sector companies in developed nations worldwide: the advantage of cost-savings on goods and services versus the disadvantage of the loss of domestic jobs.

Accepted Answer

The dilemma described in the sentence is often associated with outsourcing, which involves contracting with another company or individual to perform a specific task or service. This often leads to cost-savings for the hiring company, but can result in the loss of domestic jobs.

Question 9

A syndicate is an investment group that makes a private agreement to come together for the purpose of financing a large commercial project that the individual members could not finance alone.

Accepted Answer

A syndicate is a group of investors who pool their resources to finance a project that would be too large or expensive for any individual member to finance alone.

Question 10

Which of the following is a problem posed by outsourcing to private-sector companies?

Accepted Answer

Outsourcing to private-sector companies can lead to loss of jobs in the domestic market as companies may seek cheaper labor and production costs in other countries. This can have a negative impact on the economy and workforce in the home country. Options B, C, and D are not necessarily inherent problems of outsourcing but may occur due to various other external factors.

Question 11

A franchisee pays a royalty fee for the continued use of a franchisor's trade name, property, and assistance.

Accepted Answer

This is correct as a franchisee typically pays a royalty fee to the franchisor in exchange for the right to use their trade name, property, and receive ongoing assistance and support.

Question 12

Which of the following is not a pertinent question in deciding whether to expand a business internationally?

Accepted Answer

The power of eminent domain in the United States is not relevant in deciding whether to expand a business internationally. The other options are important considerations in the decision-making process.

Question 13

Explain the dilemmas faced by businesses with regard to outsourcing.

Accepted Answer

The answer of Explain the dilemmas faced by businesses with...

Question 14

Which of the following parties in the United States would be most likely to favor outsourcing?

Accepted Answer

Multinational corporations often favor outsourcing as a means to reduce costs and increase profitability. Democrats and union members are more likely to be opposed to outsourcing, while manufacturing workers may also view outsourcing as a threat to their job security.

Question 15

Goldstar Hair Fashions, Inc. (Goldstar), a famous beauty salon chain based in the United States, plans to expand its business overseas. It decides to open a salon in London. Due to the prohibitive costs of doing so, it allows a local entrepreneur, Marjorie, to provide beauty services under its trade name. However, any failure to conform to Goldstar's standards of services on the part of Marjorie will result in termination of the agreement. Identify the type of agreement between Goldstar and Marjorie. How will Goldstar benefit from this agreement?

Accepted Answer

The answer of Goldstar Hair Fashions, Inc. (Goldstar), a famous...

Question 16

What initial questions are relevant in terms of deciding whether to "take the plunge" into international "waters"; in other words, what are the relevant preliminary inquiries to make in deciding whether to expand internationally?

Accepted Answer

The answer of What initial questions are relevant in terms...

Question 17

In deciding whether to take the "plunge" into international "waters," managers of businesses need to ask whether they will be able to deal successfully with currency fluctuations.

Accepted Answer

Currency fluctuations are a major risk factor for businesses operating internationally, as they can impact profits and financial stability. Therefore, it is important for managers to assess their ability to manage and mitigate this risk before expanding into international markets.

Question 18

A franchisor owns a trade name or trademark, and a franchisee sells or distributes goods using the trade name or trademark.

Accepted Answer

This is a correct definition of a franchise agreement. The franchisor provides the franchisee with the use of their trademark or trade name in exchange for fees or royalties, and the franchisee operates under the established brand identity and business model of the franchisor.

Question 19

If management should decide to expand its business internationally, it should determine the optimal level of global involvement by answering all but which of the following questions?

Accepted Answer

The question about exercising power of condemnation is not relevant to determining the optimal level of global involvement. The other options (A, B, and C) are all relevant options for expanding internationally and determining the best approach for the firm.

Quiz 16: Law and Business Associations I

Which of the following is not a pertinent question in deciding whether to expand a business internationally?

Targeted franchising is a form of licensing in which franchisees in the targeted countries are allowed to use the franchisor's name in exchange for a percentage of the gross profits.

A joint stock company is treated as a partnership because its members own shares that are nontransferable.

franchising is a form of licensing in which franchisees in the targeted countries are allowed to use the franchisor's name in exchange for a percentage of the gross profits.

Discuss the terms of a franchise agreement.

A disadvantage of a syndicate is that it cannot raise large amounts of capital quickly.

The Franchise Rule promulgated by the Federal Trade Commission requires a franchisor to disclose all material facts to a franchisee before entering into a franchise agreement.

The increase in of manufacturing jobs brought into focus a dilemma for private- and public-sector companies in developed nations worldwide: the advantage of cost-savings on goods and services versus the disadvantage of the loss of domestic jobs.

A syndicate is an investment group that makes a private agreement to come together for the purpose of financing a large commercial project that the individual members could not finance alone.

Which of the following is a problem posed by outsourcing to private-sector companies?

A franchisee pays a royalty fee for the continued use of a franchisor's trade name, property, and assistance.

Which of the following is not a pertinent question in deciding whether to expand a business internationally?

Explain the dilemmas faced by businesses with regard to outsourcing.

Which of the following parties in the United States would be most likely to favor outsourcing?

What initial questions are relevant in terms of deciding whether to "take the plunge" into international "waters"; in other words, what are the relevant preliminary inquiries to make in deciding whether to expand internationally?

In deciding whether to take the "plunge" into international "waters," managers of businesses need to ask whether they will be able to deal successfully with currency fluctuations.

A franchisor owns a trade name or trademark, and a franchisee sells or distributes goods using the trade name or trademark.

If management should decide to expand its business internationally, it should determine the optimal level of global involvement by answering all but which of the following questions?