Exam 4: Forms of Business Ownership

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.Nyami and Rice have recently abandoned their business because they could not pay its outstanding business debts.Since Nyami and Rice are both liable for the debts, their business was a(n):

North American Van Lines and Allied Van Lines combined in a _____ merger that will create the world's largest moving company.Prior to the merger, North American was the leading company in moving high-end merchandise such as computer and hospital equipment, while Allied specialized in households.

A person who buys a franchise has the same level of control as an entrepreneur who opens his or her own sole proprietorship.

A corporation:

_____ occur when mergers or acquisitions are financed by large amounts of borrowed money, secured by the acquired company's assets.

Which of the following is an example of a disadvantage associated with a partnership?

Aaron Medford has invested $600 in the corporate stock of a manufacturer of offshore oil drilling equipment.If the company goes bankrupt, the most Medford could lose would be:

List the three major types of mergers.

Bob Nichol and Martha Bohner own and operate a small company that bakes and sells Thunder Muffins, gigantic muffins full of blueberries, blackberries, or raspberries.They sell the muffins at a local farm that is open to the public on weekends.Since they operate the business as a partnership, they should:

Double taxation is a distinct advantage that corporations have over other forms of ownership.

If the sole proprietorship acquires a legal business name, the owner then has limited liability.

With its ease of registration and pro-corporate policies, _____ is called the "state of incorporation." About half of the Fortune 500 companies are incorporated there.

Of all forms of business ownership, corporations account for the largest share of both:

Who owns a corporation?

The most common form of business organization is the:

To avoid double taxation, a new entrepreneur may elect to organize as a(n):

In the United States, which form of business organization generates the most sales and profits?

Partnership agreements generally specify all of following EXCEPT:

The franchise agreement:

_____ are corporate takeovers financed by large amounts of borrowed money.