UPDATE
SandyhworkshforhRigorMart.hShehsuperviseshregionalhmanagershandhdirectshthemhbase
dhonhordershfromhthehboardhofhdirectors.hSandy'shpositionhalsohentitleshherhtohstockhown
ershiphinhthehcompany.hWhathishSandy'shpositionhinhthehcompany?h-hcorrecthanswer-
EXECUTIVEh&hSHAREHOLDER
Ritahwantshtohbehinvolvedhinhbusiness.hShehhashahfairhamounthofhmoneyhtohinvest,hbuths
hehdoeshnothwanthtohbehinvolvedhinhmanagement.hShehwantshtohformhahbusinesshinhtheh
quickesthwayhpossiblehunderhherhcircumstances.hWhichhformhofhbusinesshwouldhbehbes
thforhRita?h-hcorrecthanswer-LIMITEDhPARTNERSHIP
Noodleoo,hahstrugglinghrestauranthchain,hwantshtohenacthahfranchisehagreementhwithhSt
ephenhtohsellhitshproducththroughhahchain-
stylehfranchise.hStephenhagreeshandhopenshthehstore,handh6hmonthshlaterhNoodleoohgo
eshbankrupt.hWhichhishmosthlikelyhtruehofhthishsituation?h-hcorrecthanswer-
IfhNoodleoohwashnothtransparenthwithhitshfinancialhdata,hithhashbrokenhthehFranchisehRul
e.
CadencehworkshforhWilderCorp.hShehmeetshwithhahteamhtohmakehall-
encompassinghdecisionshconcerninghthehdirectionhofhthehbusiness.hShehalsohpersonall
yhsuperviseshmanagershandhconductshtraininghforhsupervisorshandhplanthmanagers.hCa
dencehalsohbuyshstockhinhWilderCorp.hWhathishCadence'shpositionhinhthehcompany?h-
hcorrecthanswer-MOREhTHANhONEhOPTION
Lilyhwantshtohbuildhahbusiness.hShehhashveryhlittlehcapital.hShehdoes,hhowever,hhavehahp
artnerhwithhwhichhshehcouldhrunhahbusiness.hLilyhwantshtohbehablehtohavoidhbeinghheldhp
ersonallyhliablehforhanyhproblemshthehbusinesshhas.hWhichhofhthehfollowinghwouldhleadh
Lilyhtohchoosehahsolehproprietorshiphorganizationhforhherhbusiness?-h-hcorrecthanswer-
LITTLEhCAPITAL
Whathishthehappropriatehdescriptionhforhahplant-processinghfranchise?h-hcorrecthanswer-
Ahfranchiseehfocuseshonhmakinghahfranchisor'shproducthusinghthehfranchisor'shmanufact
uringhmethodhorhrecipe.
KoffmanhCorporationhishtryinghtohraisehcapital.hWhathmethodhwouldhbehthehleasthriskyhtoh
raisehcapitalhifhithhashahless-than-favorablehcredithrating?h-hcorrecthanswer-