Exam 4: Options for Organizing Business

Which of the following is a corporation that provides a service,but is neither owned by the government nor focuses on earning profits?

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

Which of the following is an advantage that corporations provide as a form of business ownership?

Raj has a business idea and is willing to invest his savings in it.He wants to operate the business on his own and also be the only person entitled to receive the profits generated from the business.Which of the following forms of business is best suited for Raj?

In a limited partnership:

Partnerships are quasi-taxable organizations.This means that they:

Which of the following forms of business ownership provides limited liability but is taxed like a partnership?

In a(n)_____,the owner has complete control over the business and can make crucial decisions without anyone else's approval.

Common stockholders within a corporation:

_____ are typically owned by many individuals and organizations who own shares of the business,called stock.

Big City Financial is allowing stockholders to purchase more shares of stock at prices below the existing market value.This is an attempt to avoid a hostile takeover by a corporate raider.Which of the following methods is being used by Big City Financial to evade the takeover?

A similarity between limited liability companies and S corporations is that both:

Catalina owns a small restaurant and is solely responsible for its debts and liabilities.She is also entitled to all the profits the restaurant makes after paying off taxes and other expenses.Her business is an example of a(n):

Tim and Andy,wealthy industrialists,borrow money from True Global Bank to acquire Univo Corp.They promise to repay the bank using the assets of Univo Corp.as collateral.In this scenario,Tim and Andy are involved in a:

Which of the following is a disadvantage of a corporation?

Which of the following statements is true of taxation in partnerships?

A _____ has been defined as "an association of two or more persons who carry on as co-owners of a business for profit."

North Farm Society is an association of farmers from rural communities.Its agenda is not to make profits but to help its members market their produce and purchase large quantities of fertilizer,seeds,and other supplies at discounted prices.Thus,North Farm Society is an example of a(n)_____.

When a corporate raider wants to acquire or take over another company,it first offers to buy some or all of the other company's stock at a premium over its current price in a(n)_____.

A corporation doing business in the state in which it is chartered is known as a(n)_____.