Question 1

A corporation's board of directors:

Accepted Answer

A) is appointed by the SEC 
B) is selected by the agency that chartered the corporation 
C) acts as organizational figureheads 
D) sets major corporate goals and policies 
E) should never have more than seven members 
A) is appointed by the SEC 
B) is selected by the agency that chartered the corporation 
C) acts as organizational figureheads 
D) sets major corporate goals and policies 
E) should never have more than seven members

Question 2

When Linda McAnem began Stirya, a New York-based computer services company, she ran it as a sole proprietorship.As a sole proprietor, McAnem:

Accepted Answer

A) found it easy to raise capital 
B) had no trouble finding qualified employees 
C) found the business to be easy and inexpensive to form 
D) had limited liability 
E) was able to take advantage of various tax deductions 
A) found it easy to raise capital 
B) had no trouble finding qualified employees 
C) found the business to be easy and inexpensive to form 
D) had limited liability 
E) was able to take advantage of various tax deductions

Question 3

List the three major categories of business ownership.

Accepted Answer

sole proprietorship,

Question 4

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

Accepted Answer

A) Both the partnership and the individuals are taxed for any profits earned. 
B) Partnerships file tax returns but pass profits and losses on to partners who report them on their tax returns. 
C) Partnerships use corporate tax rates in filing returns. 
D) Partnerships are limited in taxes depending on number of partners. 
E) None of the above about the taxation of partnerships is true. 
A) Both the partnership and the individuals are taxed for any profits earned. 
B) Partnerships file tax returns but pass profits and losses on to partners who report them on their tax returns. 
C) Partnerships use corporate tax rates in filing returns. 
D) Partnerships are limited in taxes depending on number of partners. 
E) None of the above about the taxation of partnerships is true.

Question 5

Fairmount Food Group purchased Swissrose International Inc., market of several brands of specialty and food service cheese from ConAgra.The _____ will make Fairmount the largest U.S.importer and marketer of specialty and deli-style cheese.

Accepted Answer

A) joint venture 
B) merger 
C) conglomerate 
D) voluntary union 
E) acquisition 
A) joint venture 
B) merger 
C) conglomerate 
D) voluntary union 
E) acquisition

Question 6

_____ are organizations formed by individuals or businesses with similar interests to achieve greater economies of scale and economic power through collective ownership.

Accepted Answer

A) Limited partnerships 
B) Cooperatives 
C) Joint ventures 
D) Franchises 
E) Vertical mergers 
A) Limited partnerships 
B) Cooperatives 
C) Joint ventures 
D) Franchises 
E) Vertical mergers

Question 7

The franchisor generally does NOT provide the franchisee with:

Accepted Answer

A) use of company name and logo 
B) assistance in site selection 
C) wholesale prices on supplies 
D) help in employee selection 
E) management training 
A) use of company name and logo 
B) assistance in site selection 
C) wholesale prices on supplies 
D) help in employee selection 
E) management training

Question 8

Which of the following provides the legal and managerial guidelines for operating the firm?

Accepted Answer

A) articles of incorporation 
B) bylaws 
C) constitution 
D) corporate structure 
E) annual report 
A) articles of incorporation 
B) bylaws 
C) constitution 
D) corporate structure 
E) annual report

Question 9

Eighty-two percent of boomers indicated that they will not retire at or before age 65.

Accepted Answer

A) True 
 B)False

Question 10

Discuss the following statement: "The franchisee has just as much control over his or her business as the sole proprietor."

Accepted Answer

That statement is false.One of the disad

Question 11

Before selling stock to the public, a corporation must register with the:

Accepted Answer

A) Internal Revenue Service 
B) Securities and Exchange Commission 
C) World Bank 
D) U.S.Treasury Department 
E) Federal Trade Commission 
A) Internal Revenue Service 
B) Securities and Exchange Commission 
C) World Bank 
D) U.S.Treasury Department 
E) Federal Trade Commission

Question 12

How is the board of directors for a corporation created?

Accepted Answer

It is elec

Question 13

Croutakie seemed like a great idea.Chef Leo Nyami and Sara Rice decided to take advantage of the popularity of shitake mushrooms and create some shitake mushrooms products that could be sold to restaurant patrons and other gourmets through their new company.The mushrooms are expensive, and there were other unexpected financial problems, so Nyami and Rice asked Bill Ng to become a limited partner.This means that Ng:

Accepted Answer

A) is limited in the number of hours he can work each month 
B) is limited in the amount he can invest 
C) qualifies for a limited income tax rate 
D) agrees not to participate in day-to-day management of the firm 
E) agrees to limit his expertise to a certain area, such as finance or marketing 
A) is limited in the number of hours he can work each month 
B) is limited in the amount he can invest 
C) qualifies for a limited income tax rate 
D) agrees not to participate in day-to-day management of the firm 
E) agrees to limit his expertise to a certain area, such as finance or marketing

Question 14

The fact that a corporation has limited liability means:

Accepted Answer

A) corporations can earn a limited amount 
B) some of the owners are limited in earnings 
C) owners' liabilities are limited to the amount invested 
D) the life of the corporation is limited 
E) the corporation's ability to expand is limited 
A) corporations can earn a limited amount 
B) some of the owners are limited in earnings 
C) owners' liabilities are limited to the amount invested 
D) the life of the corporation is limited 
E) the corporation's ability to expand is limited

Question 15

A _____ is when two or more companies form a special entity to undertake a specific project, usually for a specific period of time.

Accepted Answer

A) general partnership 
B) limited-time partnership 
C) joint venture 
D) cooperative 
E) C corporation 
A) general partnership 
B) limited-time partnership 
C) joint venture 
D) cooperative 
E) C corporation

Question 16

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 her first step be if she decides to incorporate her business to make it easier to find investors?

Accepted Answer

A) to elect a board of directors 
B) to write the articles of incorporation 
C) to hold an organizational meeting with shareholders 
D) to sell stock to her customers 
E) to patent her products 
A) to elect a board of directors 
B) to write the articles of incorporation 
C) to hold an organizational meeting with shareholders 
D) to sell stock to her customers 
E) to patent her products

Question 17

Back in the late 19th century, the HYPERLINK "http://en.wikipedia.org/wiki/Carnegie_Steel" \o "Carnegie Steel" Carnegie Steel company controlled not only the mills where the HYPERLINK "http://en.wikipedia.org/wiki/Steel" \o "Steel" steel was manufactured, but also the mines where the HYPERLINK "http://en.wikipedia.org/wiki/Iron_ore" \o "Iron ore" iron ore was extracted, the coal mines that supplied the HYPERLINK "http://en.wikipedia.org/wiki/Coal" \o "Coal" coal, the ships that transported the iron ore and the railroads that transported the coal to the factory.Through several _____ mergers the steel company gained control of the various resources it needed to product steel.

Accepted Answer

A) acquired 
B) combination 
C) horizontal 
D) functional 
E) vertical 
A) acquired 
B) combination 
C) horizontal 
D) functional 
E) vertical

Question 18

The form of business ownership that has the most difficulty in raising capital is the:

Accepted Answer

A) general partnership 
B) limited partnership 
C) cooperative 
D) corporation 
E) sole proprietorship 
A) general partnership 
B) limited partnership 
C) cooperative 
D) corporation 
E) sole proprietorship

Question 19

Who are the owners of a corporation?

Accepted Answer

stockholde

Question 20

Which of the following statements about a general partnership is true?

Accepted Answer

A) A general partnership is an entity separate from its owners. 
B) A general partnership is the most popular form of business ownership. 
C) The partnership agreement must be in writing to be legal. 
D) General partnerships are usually "double-taxed." 
E) Partners in a general partnership co-own the company's assets. 
A) A general partnership is an entity separate from its owners. 
B) A general partnership is the most popular form of business ownership. 
C) The partnership agreement must be in writing to be legal. 
D) General partnerships are usually "double-taxed." 
E) Partners in a general partnership co-own the company's assets.

A corporation's board of directors:

When Linda McAnem began Stirya, a New York-based computer services company, she ran it as a sole proprietorship.As a sole proprietor, McAnem:

List the three major categories of business ownership.

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

Fairmount Food Group purchased Swissrose International Inc., market of several brands of specialty and food service cheese from ConAgra.The _____ will make Fairmount the largest U.S.importer and marketer of specialty and deli-style cheese.

_____ are organizations formed by individuals or businesses with similar interests to achieve greater economies of scale and economic power through collective ownership.

The franchisor generally does NOT provide the franchisee with:

Which of the following provides the legal and managerial guidelines for operating the firm?

Eighty-two percent of boomers indicated that they will not retire at or before age 65.

Discuss the following statement: "The franchisee has just as much control over his or her business as the sole proprietor."

Before selling stock to the public, a corporation must register with the:

How is the board of directors for a corporation created?

The fact that a corporation has limited liability means:

A _____ is when two or more companies form a special entity to undertake a specific project, usually for a specific period of time.

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 her first step be if she decides to incorporate her business to make it easier to find investors?

The form of business ownership that has the most difficulty in raising capital is the:

Who are the owners of a corporation?

Which of the following statements about a general partnership is true?

Understanding Economic Systems and Business

Making Ethical Decisions and Managing a Socially Responsible Business

Competing in the Global Marketplace

Entrepreneurship: Starting and Managing Your Own Business

Management and Leadership in Todays Organizations

Designing Organizational Structures

Managing Human Resources and Labor Relations

Motivating Employees

Achieving World-Class Operations Management

Creating Products and Pricing Strategies to Meet Customers Needs

Distributing and Promoting Products and Services

Using Technology to Manage Information

Using Financial Information and Accounting

Understanding Money and Financial Institutions

Understanding Financial Management and Securities Markets

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Exam 4: Forms of Business Ownership

A corporation's board of directors:

When Linda McAnem began Stirya, a New York-based computer services company, she ran it as a sole proprietorship.As a sole proprietor, McAnem:

List the three major categories of business ownership.

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

Fairmount Food Group purchased Swissrose International Inc., market of several brands of specialty and food service cheese from ConAgra.The _____ will make Fairmount the largest U.S.importer and marketer of specialty and deli-style cheese.

_____ are organizations formed by individuals or businesses with similar interests to achieve greater economies of scale and economic power through collective ownership.

The franchisor generally does NOT provide the franchisee with:

Which of the following provides the legal and managerial guidelines for operating the firm?

Eighty-two percent of boomers indicated that they will not retire at or before age 65.

Discuss the following statement: "The franchisee has just as much control over his or her business as the sole proprietor."

Before selling stock to the public, a corporation must register with the:

How is the board of directors for a corporation created?

The fact that a corporation has limited liability means:

A _____ is when two or more companies form a special entity to undertake a specific project, usually for a specific period of time.

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 her first step be if she decides to incorporate her business to make it easier to find investors?

The form of business ownership that has the most difficulty in raising capital is the:

Who are the owners of a corporation?

Which of the following statements about a general partnership is true?

Understanding Economic Systems and Business

Making Ethical Decisions and Managing a Socially Responsible Business

Competing in the Global Marketplace

Entrepreneurship: Starting and Managing Your Own Business

Management and Leadership in Todays Organizations

Designing Organizational Structures

Managing Human Resources and Labor Relations

Motivating Employees

Achieving World-Class Operations Management

Creating Products and Pricing Strategies to Meet Customers Needs

Distributing and Promoting Products and Services

Using Technology to Manage Information

Using Financial Information and Accounting

Understanding Money and Financial Institutions

Understanding Financial Management and Securities Markets

Your Career in Business

Filters