Exam 3: Selecting a Form of Business Ownership

With a sole proprietorship,you -- the owner -- are,in effect,the business.

A _____ is entirely separate from the parties who own it.

A disadvantage of a corporation is that managers and shareholders may have goals that conflict.

A disadvantage of the S-corporation is unlimited liability.

Many people are reluctant to enter into partnerships because of _____.

Who were the original shareholders in Ben and Jerry's?

Scuffy the Tugboat is a family-run business that makes tugboats. It is owned by three brothers, Jack, Frank, and Bob. Their first tugboat is still towing ships in Boston Harbor, and over the years, success has allowed them to grow the company by plowing money back into it. Now, however, they want to expand but they are not sure how they should do this. They are also unsure about which legal form of organization is best for them. -Scuffy the Tugboat could not operate as a sole proprietorship.

The most important benefit of incorporation is the limited liability to which the owners are exposed.

Sole proprietorships account for about 72% of all U.S.businesses.

The board of directors of a corporation sets the company's policies,goals and decisions,and approves the distribution of dividends.

The major problem with general partnerships is:

Realizing more efficient economies of scale is not practical through mergers or acquisitions.

Which of the following is not a requirement of an S-corporation?

Who is considered hostile in a hostile takeover?

A sole proprietorship is a legal form of business ownership.

About what percent of U.S.businesses are partnerships?

Ben Cohen and Jerry Greenfield started Ben & Jerry's as a corporation.

Kraft and Heinz were an example of a(n)_____.

Which of the following is not true for a sole proprietor?

In a corporation,all of the owners help run the business.