A Business That Exists Because of an Arrangement Between the Owner

question 23

Multiple Choice

A business that exists because of an arrangement between the owner of a trade name or trademark and a person who sells goods or services under the trade name or trademark is known as an) ________.

• A)Franchise
• B)Joint partnership
• C)Approved arrangement
• D)Consensual seller
• E)Joint venture

---

Definitions:

Obligations

Duties or commitments that are legally binding, arising from contract law, statute, or other legal requirements.

Partnership Agreement

A contract between partners in a business that outlines the rights, responsibilities, and proportions of ownership among them.

Classes Of Partners

Refers to the various types of partnership roles in a business, such as general partners, limited partners, and managing partners, each bearing different degrees of liability and responsibility.

Unlimited Liability

A legal obligation where a business owner or investor is personally responsible for all the debts of the business, without any limit on the amount they can be required to pay.