Question 1

An acquisition is when one company buys the property and obligations of another company.

Accepted Answer

A) True 
 B)False  True

Question 2

Wilson Office Supplies has announced plans to purchase all of the property and assume the obligations of Brown & Craft Stationery,Inc.,a firm that has been one of its major competitors.Wilson's plans are an example of a vertical merger.

Accepted Answer

A) True 
 B)False  False

Question 3

Which of the following is an advantage of a sole proprietorship?

Accepted Answer

A) longer survival 
B) no special taxes 
C) unlimited liability 
D) limited liability 
A) longer survival 
B) no special taxes 
C) unlimited liability 
D) limited liability B

Question 4

All of the partners in a general partnership have limited liability for the debts of their firm.

Accepted Answer

A) True 
 B)False

Question 5

Co-ops distribute their profits to members as a reduction in members' costs.These profits are non-taxable.

Accepted Answer

A) True 
 B)False

Question 6

One of the strengths of the sole proprietorship is its ability to sustain rapid growth by raising large amounts of financial resources.

Accepted Answer

A) True 
 B)False

Question 7

People who form co-operatives:

Accepted Answer

A) believe the government should play a larger role in the economy. 
B) dislike the notion of having owners,managers,and customers as separate individuals with separate goals. 
C) see competitive behaviour as the key to ensuring rapid economic growth. 
D) want to find a way to supply basic necessities free of charge to everyone. 
A) believe the government should play a larger role in the economy. 
B) dislike the notion of having owners,managers,and customers as separate individuals with separate goals. 
C) see competitive behaviour as the key to ensuring rapid economic growth. 
D) want to find a way to supply basic necessities free of charge to everyone.

Question 8

Marie recently purchased 100 shares of stock in the McBun Development Corporation.Marie has become a(n)_____________ of McBun Development.

Accepted Answer

A) owner 
B) manager 
C) creditor 
D) partner 
A) owner 
B) manager 
C) creditor 
D) partner

Question 9

Which of the following statements about the operation of a corporation is correct?

Accepted Answer

A) A corporation receives its charter from the federal or a provincial government. 
B) A corporate charter automatically expires in 99 years and must be renewed if the corporation wants to remain in business. 
C) Owners of a corporation have unlimited liability for any claims against their company. 
D) A corporation tends to be much easier to set up than a sole proprietorship or partnership. 
A) A corporation receives its charter from the federal or a provincial government. 
B) A corporate charter automatically expires in 99 years and must be renewed if the corporation wants to remain in business. 
C) Owners of a corporation have unlimited liability for any claims against their company. 
D) A corporation tends to be much easier to set up than a sole proprietorship or partnership.

Question 10

In a limited liability partnership,each partner's risk of losing personal assets is:

Accepted Answer

A) limited to the amount that partner invested in the company. 
B) limited to losses that result from their own acts and omissions and the acts and omissions of those who work under their supervision. 
C) determined entirely by the maximum loss provision established by the articles of co-partnership. 
D) nonexistent. 
A) limited to the amount that partner invested in the company. 
B) limited to losses that result from their own acts and omissions and the acts and omissions of those who work under their supervision. 
C) determined entirely by the maximum loss provision established by the articles of co-partnership. 
D) nonexistent.

Question 11

A major advantage of sole proprietorships is that an owner has limited liability for the debts of his or her business.

Accepted Answer

A) True 
 B)False

Question 12

Another word for debt is _______.

Accepted Answer

A) Liability 
B) Partnerships 
C) Sole proprietorships 
D) Limited liability partnerships 
A) Liability 
B) Partnerships 
C) Sole proprietorships 
D) Limited liability partnerships

Question 13

A leveraged buyout is an attempt by top management to gain control of a company by issuing a large amount of new stock.

Accepted Answer

A) True 
 B)False

Question 14

A(n)___________ is an arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in a given territory.

Accepted Answer

A) conditional grant 
B) franchise agreement 
C) trade contract 
D) extended ownership agreement 
A) conditional grant 
B) franchise agreement 
C) trade contract 
D) extended ownership agreement

Question 15

One advantage of a partnership is that there is a simple process for partners to terminate their business.

Accepted Answer

A) True 
 B)False

Question 16

Compared to sole proprietorships,an advantage of partnerships is their ability to obtain more financial resources.

Accepted Answer

A) True 
 B)False

Question 17

List some of the economic sectors where you find co-operatives in Canada.

Accepted Answer

Some of the largest sectors are: -Financ

Question 18

The result of two firms combining to form one company is called a:

Accepted Answer

A) joint tenancy. 
B) tenancy in common. 
C) merger. 
D) voluntary directorship. 
A) joint tenancy. 
B) tenancy in common. 
C) merger. 
D) voluntary directorship.

Question 19

The limited liability provided to limited partners means that they are not responsible for the debts of the business beyond:

Accepted Answer

A) the firm's total assets. 
B) the amount they have invested in the company. 
C) the percentage of profits they are entitled to earn. 
D) their total personal assets. 
A) the firm's total assets. 
B) the amount they have invested in the company. 
C) the percentage of profits they are entitled to earn. 
D) their total personal assets.

Question 20

Todd and Jorge have considered starting their own business but are concerned about the possibility of losing their personal assets if the business fails.One way for both Todd and Jorge to avoid this risk would be to organize their firm as a:

Accepted Answer

A) general partnership. 
B) limited partnership. 
C) corporation. 
D) sole proprietorship. 
A) general partnership. 
B) limited partnership. 
C) corporation. 
D) sole proprietorship.

An acquisition is when one company buys the property and obligations of another company.

Wilson Office Supplies has announced plans to purchase all of the property and assume the obligations of Brown & Craft Stationery,Inc.,a firm that has been one of its major competitors.Wilson's plans are an example of a vertical merger.

Which of the following is an advantage of a sole proprietorship?

All of the partners in a general partnership have limited liability for the debts of their firm.

Co-ops distribute their profits to members as a reduction in members' costs.These profits are non-taxable.

One of the strengths of the sole proprietorship is its ability to sustain rapid growth by raising large amounts of financial resources.

People who form co-operatives:

Marie recently purchased 100 shares of stock in the McBun Development Corporation.Marie has become a(n)_____________ of McBun Development.

Which of the following statements about the operation of a corporation is correct?

In a limited liability partnership,each partner's risk of losing personal assets is:

A major advantage of sole proprietorships is that an owner has limited liability for the debts of his or her business.

Another word for debt is _______.

A leveraged buyout is an attempt by top management to gain control of a company by issuing a large amount of new stock.

A(n)___________ is an arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in a given territory.

One advantage of a partnership is that there is a simple process for partners to terminate their business.

Compared to sole proprietorships,an advantage of partnerships is their ability to obtain more financial resources.

List some of the economic sectors where you find co-operatives in Canada.

The result of two firms combining to form one company is called a:

The limited liability provided to limited partners means that they are not responsible for the debts of the business beyond:

Todd and Jorge have considered starting their own business but are concerned about the possibility of losing their personal assets if the business fails.One way for both Todd and Jorge to avoid this risk would be to organize their firm as a:

Taking Risks and Making Profits Within the Dynamic Business Environment

How Economic Issues Affect Business

Competing in Global Markets

The Role of Government in Business

Ethics and Social Responsibility

Entrepreneurship and Starting a Small Business

Management and Leadership

Adapting Organizations to Todays Markets

Producing World-Class Goods and Services

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Understanding Employeemanagement Issues and Relations

Marketing: Building Customer and Stakeholder Relationships

Managing the Marketing Mix: Product, Price, Place, and Promotion

Understanding Accounting and Financial Information

Financial Management

The Financial Services Industry in Canada

Filters

Exam 6: Forms of Business Ownership

An acquisition is when one company buys the property and obligations of another company.

Wilson Office Supplies has announced plans to purchase all of the property and assume the obligations of Brown & Craft Stationery,Inc.,a firm that has been one of its major competitors.Wilson's plans are an example of a vertical merger.

Which of the following is an advantage of a sole proprietorship?

All of the partners in a general partnership have limited liability for the debts of their firm.

Co-ops distribute their profits to members as a reduction in members' costs.These profits are non-taxable.

One of the strengths of the sole proprietorship is its ability to sustain rapid growth by raising large amounts of financial resources.

People who form co-operatives:

Marie recently purchased 100 shares of stock in the McBun Development Corporation.Marie has become a(n)_____________ of McBun Development.

Which of the following statements about the operation of a corporation is correct?

In a limited liability partnership,each partner's risk of losing personal assets is:

A major advantage of sole proprietorships is that an owner has limited liability for the debts of his or her business.

Another word for debt is _______.

A leveraged buyout is an attempt by top management to gain control of a company by issuing a large amount of new stock.

A(n)___________ is an arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell a product or service to others in a given territory.

One advantage of a partnership is that there is a simple process for partners to terminate their business.

Compared to sole proprietorships,an advantage of partnerships is their ability to obtain more financial resources.

List some of the economic sectors where you find co-operatives in Canada.

The result of two firms combining to form one company is called a:

The limited liability provided to limited partners means that they are not responsible for the debts of the business beyond:

Todd and Jorge have considered starting their own business but are concerned about the possibility of losing their personal assets if the business fails.One way for both Todd and Jorge to avoid this risk would be to organize their firm as a:

Taking Risks and Making Profits Within the Dynamic Business Environment

How Economic Issues Affect Business

Competing in Global Markets

The Role of Government in Business

Ethics and Social Responsibility

Entrepreneurship and Starting a Small Business

Management and Leadership

Adapting Organizations to Todays Markets

Producing World-Class Goods and Services

Motivating Employees

Human Resource Management: Finding and Keeping the Best Employees

Understanding Employeemanagement Issues and Relations

Marketing: Building Customer and Stakeholder Relationships

Managing the Marketing Mix: Product, Price, Place, and Promotion

Understanding Accounting and Financial Information

Financial Management

The Financial Services Industry in Canada

Filters