Question 4

A limited liability company CANNOT be formed if:

a. there are more than three partners.

b the company requires a professional state license.

c. it uses a fictitious business name.

d. profits are projected to be more than $3 million dollars per year.

Question 5

"Operating agreements" determine:

a. how profits and losses are allocated among members.

b. who the owners are.

c. if an owner's interest will pass automatically or not upon his or her death.

d. all of the above.

Question 6

A business arrangement in which one party or company gives another party or company permission to manufacture its product for a specified payment, apply a brand name or trademark, or use patented technology is known as a:

a. permit.

b. certificate.

c. license.

d. grant.

Question 7

A payment made by one party, the licensee or franchisee, to another that owns a particular asset, the licensor or franchisor, for the right to ongoing use of that asset.

a. post payment.

b. reciprocal payment

c. bribe.

d. royalty.