Question

question 19 (2.5 points)
renata starts up nails by renata, a nail salon, but she doesnt set up any a separate business entity for this purpose. renata is
a) a franchisor.
b) a sole proprietor.
c) a limited partner.
d) a franchisee.
question 20 (2.5 points)
tinas tacos, inc., and valeries product producers, inc. have a manufacturing franchise arrangement. this involves the transfer of
a) a license.
b) a trade name.
c) the ownership of the business.

Explanation:

Question 19

A sole proprietor is an individual who owns and operates a business without creating a separate legal entity. Since Renata didn't set up a separate business entity for her nail salon, she fits the definition of a sole proprietor. A franchisor is a company that grants a franchise (a franchisor - franchisee relationship is about licensing a business model). A limited partner is part of a partnership structure (usually with less management control).

In a manufacturing franchise arrangement, the franchisor (Tina's Tacos, Inc. in this case) typically transfers a license to the franchisee (Valerie's Product Producers, Inc.) which allows the franchisee to use the franchisor's manufacturing methods, trademarks etc. for production. A trade - name transfer might be part of a license but the key in a manufacturing franchise is the license. The ownership of the business is not transferred in a franchise (the franchisee still owns their own business entity).

Answer:

B. a sole proprietor

Question 20