Exam 4: Forms of Business Ownership

Suzanne Pogell wanted to learn to sail, but she could find no one to teach her because men were the ones who sailed, and women were their crew.She finally did convince someone to teach her to sail, and after mastering sailing, she started an all-woman sailing school called Womanship as a sole proprietorship.When she dies, the:

Karl Metzger plans to invest $5,000 in a partnership with his brother to produce and sell handcrafted violins, zithers, and other string instruments.Metzger does not plan to work in the business and wants no more liability than his investment.He should be a:

Which of the following describes a disadvantage associated with a corporation?

When Ashland Plastics and Melamine Chemicals formed a joint venture to develop flame-resistant plastic sheeting, the relationship most likely ended as soon as the project was completed.

The combination of two companies that join to form one company is called a:

Jack Smith and four other people own Persimmon Hill Farm, an agric-entertainment farm which provides corn mazes, bonfires, hay rides, and food treats to paying visitors.All of the owners have limited financial risk.Persimmon Hill Farm is a(n):

What forms of business ownership have to deal with the disadvantage of unlimited liability?

A _____ is a hybrid organization that offers the same liability protection as a corporation, but may be taxed as either a partnership or a corporation.

In a _____ partnership, partners have unlimited liability for all of the firm's business obligations and who control its operations.

Fred Pittman has invested $10,000 in his son's motorcycle repair shop, but he takes no part in its management.Pittman is a(n):

A _____ is form of business organization that is created to carry out a single project and is dissolved upon completion.

There are over 1,100 Corner Stores that market candy.When Valero Energy Corp.purchased the chain of retail stores, it was an example of a _____ merger.

The growing popularity of bread machines has become a new business opportunity for Shelly Clemins and Jan Schoenbarr.The women make and sell bread machine covers and fabric gift bags to hold the bread loaves made in the machines.The women share the responsibilities of running the business (called Bread & Butter) as well as its profits equally.Bread & Butter would be an example of a(n):

The C Corporation is another term for:

The corporation's board of directors elects the corporate officers.

A group of cotton growers in North Georgia and North Alabama pooled their resources to build a cotton gin and storage area for the ginned cotton.They marketed their cotton to textile mills under one label.This collective ownership organization is a:

An S corporation:

List the two basic types of partnership.

When companies in the same industry merge to achieve economies of scale and to expand their product lines, it is called a horizontal merger.

Three Sisters Specialty Foods, owned by Judith Coker, Millie Humphreys, and Jade Watson, sells eggless cake mixes for people on a restricted diet.Coker recently purchased an industrial grade mixer without conferring with her sisters who were upset when they learned that they were all three liable for the payments on the mixer.Three Sisters is an example of a: