Week 2 Apply Assignment.docx - 1 Noodleoo a struggling...

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1. Noodleoo, a struggling restaurant chain, wants to enact a franchise agreement with Stephen to sell its product through a chain-style franchise. Stephen agrees and opens the store, and 6 months later Noodleoo goes bankrupt. Which is most likely true of this situation? If Noodleoo was not transparent with its financial data, Stephen has no recourse. The Franchise rule does not apply to struggling companies. Stephen was not responsible for looking into the financial status of Noodleoo before making the agreement. If Noodleoo was not transparent with its financial data, it has broken the Franchise Rule. 2. What is the appropriate description for a chain-style franchise? A franchisee makes or sells a franchisor’s product under their own business name or organization. A franchisee produces and sells a franchisor’s product using the franchisor’s name. A franchisee sells a franchisor’s product in a specific geographic area. 3. Which of the following roles best fits the situation?: Kevin wants to create a business but is not sure what role is best for him. He has capital to invest. He has several partners with which he can begin a business. He has the most management experience of all his potential partners. General partner in a limited partnership. Neither a limited or general partner would be a good choice. Limited partner in a limited partnership.

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