Question 1

A distribution of earnings to the stockholders of a corporation is a(n)

Accepted Answer

A)  par distribution. 
B)  dividend. 
C)  earnings per share. 
D)  distributed payment. 
E)  common payment. 
A)  par distribution. 
B)  dividend. 
C)  earnings per share. 
D)  distributed payment. 
E)  common payment.

Question 2

A cooperative provides a service more effectively than any member could by acting alone.

Accepted Answer

A) True 
 B)False

Question 3

Glenn owns and operates a large hardware store in Missouri that employs about fifty people.He delegates some of the decision making to two managers, but he remains the only owner.Glenn's business is organised as a

Accepted Answer

A)  corporation. 
B)  partnership. 
C)  sole trader. 
D)  limited partnership. 
E)  limited-liability corporation. 
A)  corporation. 
B)  partnership. 
C)  sole trader. 
D)  limited partnership. 
E)  limited-liability corporation.

Question 4

Twenty-five young investors decided that they want to start a dating service; however, they do not want to be held personally liable for losses of the company.They want to avoid double taxation.Which type of business organisation would best fit the needs of these individuals?

Accepted Answer

A)  Corporation 
B)  Closed corporation 
C)  Partnership 
D)  S-corporation 
E)  Limited cooperative 
A)  Corporation 
B)  Closed corporation 
C)  Partnership 
D)  S-corporation 
E)  Limited cooperative

Question 5

Not-for-profit organisations must meet specific guidelines in order to obtain tax-exempt status.These guidelines are structured by the

Accepted Answer

A)  board of directors. 
B)  U.S.Uniform Partnership Act. 
C)  U.S.Bureau of the Census. 
D)  Chamber of Commerce. 
E)  Internal Revenue Service. 
A)  board of directors. 
B)  U.S.Uniform Partnership Act. 
C)  U.S.Bureau of the Census. 
D)  Chamber of Commerce. 
E)  Internal Revenue Service.

Question 6

What is the significance of the name preferred stock?

Accepted Answer

A)  It is the type of stock that most investors would rather have. 
B)  Its claims on dividends are paid before those of ordinary share. 
C)  The overall return on preferred stock is higher than that on ordinary share. 
D)  This stock is available only to select individuals associated with the company. 
E)  This stock provides the most powerful voting rights. 
A)  It is the type of stock that most investors would rather have. 
B)  Its claims on dividends are paid before those of ordinary share. 
C)  The overall return on preferred stock is higher than that on ordinary share. 
D)  This stock is available only to select individuals associated with the company. 
E)  This stock provides the most powerful voting rights.

Question 7

The order of difficulty and expense, from most to least, when forming a business organisation is as follows:

Accepted Answer

A)  corporation, sole traders, partnership. 
B)  corporation, partnership, sole traders. 
C)  partnership, corporation, sole trader. 
D)  partnership, sole trader, partnership. 
E)  sole trader, partnership, corporation. 
A)  corporation, sole traders, partnership. 
B)  corporation, partnership, sole traders. 
C)  partnership, corporation, sole trader. 
D)  partnership, sole trader, partnership. 
E)  sole trader, partnership, corporation.

Question 8

Unless specified in the charter, a corporation has a

Accepted Answer

A)  legal life of one decade. 
B)  life of seventeen years, which is renewable. 
C)  life of fifty years. 
D)  perpetual life. 
E)  legally recognised life, which varies from state to state. 
A)  legal life of one decade. 
B)  life of seventeen years, which is renewable. 
C)  life of fifty years. 
D)  perpetual life. 
E)  legally recognised life, which varies from state to state.

Question 9

Quarrels among business associates have become common.The associates quarrel over what products the firm should sell, division of authority, selection of personnel, whether to bring family members into the business, whether to expand, and who is contributing most to the firm's success.Such feuding, which damages business relationships, occurs most frequently in what form of business?

Accepted Answer

A)  Partnerships 
B)  Cooperatives 
C)  Corporations 
D)  Sole trading 
E)  S-corporations 
A)  Partnerships 
B)  Cooperatives 
C)  Corporations 
D)  Sole trading 
E)  S-corporations

Question 10

Which form of business is the easiest to start?

Accepted Answer

A)  Corporation 
B)  Partnership 
C)  Entrepreneurship 
D)  Sole trader 
E)  S-corporation 
A)  Corporation 
B)  Partnership 
C)  Entrepreneurship 
D)  Sole trader 
E)  S-corporation

Question 11

A corporation chartered in the UK and doing business in the UK is known as a domestic corporation.

Accepted Answer

A) True 
 B)False

Question 12

A ____ is a merger between firms operating at different but related levels in the production and marketing of a product.

Accepted Answer

A)  conglomerate merger 
B)  Cooperative 
C)  joint venture 
D)  vertical merger 
E)  horizontal merger 
A)  conglomerate merger 
B)  Cooperative 
C)  joint venture 
D)  vertical merger 
E)  horizontal merger

Question 13

Economists, financial analysts, corporate managers, and stockholders all agree that mergers are good for both the company and the economy.

Accepted Answer

A) True 
 B)False

Question 14

A temporary association organised to perform a specific task requiring a large amount of capital is known as a(n)

Accepted Answer

A)  conglomerate. 
B)  cooperative. 
C)  master limited partnership. 
D)  syndicate. 
E)  authority. 
A)  conglomerate. 
B)  cooperative. 
C)  master limited partnership. 
D)  syndicate. 
E)  authority.

Question 15

A ____ invests money in the business but has no management responsibility.

Accepted Answer

A)  general partner 
B)  limited partner 
C)  sole trader 
D)  nominal partner 
E)  Stockbroker 
A)  general partner 
B)  limited partner 
C)  sole trader 
D)  nominal partner 
E)  Stockbroker

Question 16

Of the three common forms of ownership, a corporation can respond to changes in market conditions more rapidly than others can.

Accepted Answer

A) True 
 B)False

Question 17

The form of business organisation that experiences double taxation is the

Accepted Answer

A)  partnership. 
B)  corporation. 
C)  venture company. 
D)  syndicated partnership. 
E)  sole trader. 
A)  partnership. 
B)  corporation. 
C)  venture company. 
D)  syndicated partnership. 
E)  sole trader.

Question 18

Boeing is incorporated in Seattle, Washington.It has a large facility in Huntsville, Alabama, and is considered a(n) ____ because it conducts business within Alabama.

Accepted Answer

A)  Outsider 
B)  domestic corporation 
C)  foreign corporation 
D)  tax write-off 
E)  alien corporation 
A)  Outsider 
B)  domestic corporation 
C)  foreign corporation 
D)  tax write-off 
E)  alien corporation

Question 19

A partnership formed to operate for a specific time period or to accomplish a specific purpose is known as a

Accepted Answer

A)  conglomerate. 
B)  cooperative. 
C)  joint venture. 
D)  corporation. 
E)  joint merger. 
A)  conglomerate. 
B)  cooperative. 
C)  joint venture. 
D)  corporation. 
E)  joint merger.

Question 20

Anyone with the money can purchase shares of Coca-Cola's stock.This makes Coca-Cola a(n) ____ corporation.

Accepted Answer

A)  Closed 
B)  Open 
C)  Domestic 
D)  Foreign 
E)  Alien 
A)  Closed 
B)  Open 
C)  Domestic 
D)  Foreign 
E)  Alien

A distribution of earnings to the stockholders of a corporation is a(n)

A cooperative provides a service more effectively than any member could by acting alone.

Glenn owns and operates a large hardware store in Missouri that employs about fifty people.He delegates some of the decision making to two managers, but he remains the only owner.Glenn's business is organised as a

Twenty-five young investors decided that they want to start a dating service; however, they do not want to be held personally liable for losses of the company.They want to avoid double taxation.Which type of business organisation would best fit the needs of these individuals?

Not-for-profit organisations must meet specific guidelines in order to obtain tax-exempt status.These guidelines are structured by the

What is the significance of the name preferred stock?

The order of difficulty and expense, from most to least, when forming a business organisation is as follows:

Unless specified in the charter, a corporation has a

Which form of business is the easiest to start?

A corporation chartered in the UK and doing business in the UK is known as a domestic corporation.

A ____ is a merger between firms operating at different but related levels in the production and marketing of a product.

Economists, financial analysts, corporate managers, and stockholders all agree that mergers are good for both the company and the economy.

A temporary association organised to perform a specific task requiring a large amount of capital is known as a(n)

A ____ invests money in the business but has no management responsibility.

Of the three common forms of ownership, a corporation can respond to changes in market conditions more rapidly than others can.

The form of business organisation that experiences double taxation is the

Boeing is incorporated in Seattle, Washington.It has a large facility in Huntsville, Alabama, and is considered a(n) ____ because it conducts business within Alabama.

A partnership formed to operate for a specific time period or to accomplish a specific purpose is known as a

Anyone with the money can purchase shares of Coca-Cola's stock.This makes Coca-Cola a(n) ____ corporation.

Introduction to Business

Responsible Business

Global Business

Small Business, Entrepreneurship, and Franchises

Leadership and Managing a Business

Flexibility Within the Organisation

Products and Services

Recruitment and Retaining the Best Employees

Employee Motivation and Team Building

The Marketing Concept

Aproduct Development and Pricing Strategies

Marketing Channels

Marketing Communications

Social Media and E-Business

Introduction to Management Accounting

Money and the Banking System

Financial Management

Personal Finances and Investments

Filters

Exam 4: Types of Business Ownership

A distribution of earnings to the stockholders of a corporation is a(n)

A cooperative provides a service more effectively than any member could by acting alone.

Glenn owns and operates a large hardware store in Missouri that employs about fifty people.He delegates some of the decision making to two managers, but he remains the only owner.Glenn's business is organised as a

Twenty-five young investors decided that they want to start a dating service; however, they do not want to be held personally liable for losses of the company.They want to avoid double taxation.Which type of business organisation would best fit the needs of these individuals?

Not-for-profit organisations must meet specific guidelines in order to obtain tax-exempt status.These guidelines are structured by the

What is the significance of the name preferred stock?

The order of difficulty and expense, from most to least, when forming a business organisation is as follows:

Unless specified in the charter, a corporation has a

Which form of business is the easiest to start?

A corporation chartered in the UK and doing business in the UK is known as a domestic corporation.

A ____ is a merger between firms operating at different but related levels in the production and marketing of a product.

Economists, financial analysts, corporate managers, and stockholders all agree that mergers are good for both the company and the economy.

A temporary association organised to perform a specific task requiring a large amount of capital is known as a(n)

A ____ invests money in the business but has no management responsibility.

Of the three common forms of ownership, a corporation can respond to changes in market conditions more rapidly than others can.

The form of business organisation that experiences double taxation is the

Boeing is incorporated in Seattle, Washington.It has a large facility in Huntsville, Alabama, and is considered a(n) ____ because it conducts business within Alabama.

A partnership formed to operate for a specific time period or to accomplish a specific purpose is known as a

Anyone with the money can purchase shares of Coca-Cola's stock.This makes Coca-Cola a(n) ____ corporation.

Introduction to Business

Responsible Business

Global Business

Small Business, Entrepreneurship, and Franchises

Leadership and Managing a Business

Flexibility Within the Organisation

Products and Services

Recruitment and Retaining the Best Employees

Employee Motivation and Team Building

The Marketing Concept

Aproduct Development and Pricing Strategies

Marketing Channels

Marketing Communications

Social Media and E-Business

Introduction to Management Accounting

Money and the Banking System

Financial Management

Personal Finances and Investments

Filters