Exam 4: Types of Business Ownership

Stephen decides his business will begin staying open until 7 p.m.instead of 6 p.m.The next day, the shop stays open until 7 p.m.This environment of flexibility to quickly change is characteristic of what form of business organisation?

All not-for-profit corporations rely solely on volunteers to perform services of the organisation.

As with a sole trader, one disadvantage of a partnership is a lack of continuity.

Every partnership must have at least one limited partner.

How can the following quotation best be explained: "Stockholders control the activities of a corporation"?

Jack has been saving his excess funds for several years and has contemplated entering a partnership with a friend from college.Jack hesitates because he knows that it is ____ to invest money in a partnership and ____ to get the money back out.

Corporations account for about 95 percent of all sales revenues.

When many banks join together to lend money to developing countries such as Bangladesh and Malaysia, they seek to spread out the risk of default.This is called

All of the following are disadvantages that Sean should consider before entering a partnership agreement with his cousin except

Most master limited partnerships are in the areas of

Darrell inherited a large amount of money from his uncle.Darrell wishes to start his own business, and his lawyers encourage him to make it a corporation.What disadvantage of a sole trader are the lawyers trying to avoid?

If the owner of a sole trader retires or dies, the owner's heirs may take over a profitable business and either sell it or continue to operate it.

Nortons, Inc.is a hardware store that is owned by members of the Norton family as well as a few close friends of the family.This company is a(n)

Shane is looking for ways to get more capital for his appliance sales and service business.He is very protective of his company's information and fears that it will get into the wrong hands.Shane would probably not want to

Unlimited liability holds a sole trader personally responsible for all the debts of the business.

Which of the following is an example of a horizontal merger?

When incorporating, a business

A voluntary association of two or more people acting as co-owners of a business is known as a

Which of the following has a restriction on the number of owners, members, or stockholders?

All corporations operate primarily for profit.