Exam 4: Forms of Business Ownership

Rebecca Siddoway own and operate Country Candies.Siddoway specializes in making rich, creamy toffees that she packages in attractive gift boxes and sells through the mail.What would be the advantage to Siddoway if she decides to incorporate her business?

The development of new drugs is very expensive.For this reason Genentech, a large biotechnical company, has entered into a _____ with Swiss-owned Roche to develop a vaccine for tuberculosis.When the vaccine is developed or when the two biotechnical companies determine the vaccine cannot be developed using their current methodology, this relationship will dissolve.

Articles of incorporation usually specify the life of a corporation as a certain number of predetermined years.

Corporations face many more government restrictions and regulations than sole proprietorships and partnerships.

Which of the following demographic groups is having the greatest impact on the growth of the franchising industry?

Dissolving a partnership is easier than dissolving a sole proprietorship.

Articles of incorporation do NOT include:

Miniature Precision Corporation, a microprocessor manufacturer, recently acquired Cameron-Price, a plastics mold manufacturer.Miniature Precision financed the transaction with 90 percent borrowed money and used Cameron-Price's assets as collateral.This type of merger is commonly known as a(n):

When Linda McAnem began Stirya, a New York-based computer services company, she ran it as a sole proprietorship.As the business grew, she realized that she did not want to be personally liable for the business's debts and wanted her business accounts to be separate from her personal accounts.Therefore, she should have:

A _____ merger brings together companies in unrelated businesses to reduce risk.

Paul Hyatt owns and operates DeepClean, a Florida-based company that cleans up mold and mildew in homes and businesses.As the sole proprietor of the business, he has unlimited liability, which means:

The sole proprietorship is considered a legal entity; therefore, it is taxed separately from the owner.

When Wachovia Bank, acquired First Union Bank Dim S.A., it was an example of a conglomerate merger.

A firm's stockholders have the right to do all of the following EXCEPT:

Which of the following is an advantage of sole proprietor ownership?

One of the disadvantages of the sole proprietorship is that the owner has unlimited liability.

Taxing a corporation's earnings and taxing the stockholder's dividends from the corporate earnings is called _____ taxation.

The merger of McKesson, the leading U.S.drug wholesaler, and HBOC, a producer of health-care inventory software, is an example of a(n) _____ merger.

A _____ is the combining two or more firms to form one new company.

For partnerships to be legal, they must be established in writing.