Exam 8: The Organizational Plan: Teams, Legal Structures, Alliances, and Directors

Lauren, a partner in J & J Company, manages its day-to-day operations.She is considered to be a _____ partner.

Match the terms with their definitions.Some terms may not be used a.Advisory board b.Public company c.Private company d.Corporate bylaws e.Corporate charter f.Limited partnership g.Partnership h.Professional corporation i.Public company j.Sole proprietorship k.​Unlimited liability -A type of company that offers limited liability to its owners and passes taxable income or losses on to the shareholders.

Ownership in a company:

Match the terms with their definitions.Some terms may not be used a.Advisory board b.Public company c.Private company d.Corporate bylaws e.Corporate charter f.Limited partnership g.Partnership h.Professional corporation i.Public company j.Sole proprietorship k.​Unlimited liability -A legal entity formed by two or more co-owners to operate a business for profit.

Emily has very little money with which to start her business so she wants to keep the cost of forming her company as low as possible.Which form of ownership would you recommend for Emily?

A significant difference between a board of directors and an advisory board is:

Match the terms with their definitions.Some terms may not be used a.Advisory board b.Public company c.Private company d.Corporate bylaws e.Corporate charter f.Limited partnership g.Partnership h.Professional corporation i.Public company j.Sole proprietorship k.​Unlimited liability -A document that establishes a company's existence.

Zenzo, Zella and Zinzi wish to form a partnership.Zenzo is putting up 60% of the capital; Zella is putting up 40%, and Zinzi is putting in no capital but will manage the business.In the absence of a provision in the partnership agreement, how will the liability and profits be distributed?

Which organisational type results in the business owner having unlimited liability?

Identify the three general forms of legal organisation.What are the major differences between these forms?

Match the term with its definition.Some terms may not be used a.Advisory board b.Company c.Management team d.Organisational test e.Partnership agreement f.Piercing the corporate veil g.Pre-emptive right h.Reciprocation i.Share certificate j.Strategic alliance -A situation in which the courts conclude that incorporation has been used to perpetrate a fraud.

Because the company is a legal entity, one of its responsibilities is to:

Match the term with its definition.Some terms may not be used a.Advisory board b.Board of directors c.General partner d.Legal entity e.Limited liability company f.Limited partner g.Non-profit organisation h.Partnership agreement i.Social capital j.Social network -A form of organisation in which owners have limited liability but pay personal income taxes on business profits.

Sometimes small business board members are given company shares in lieu of compensation.

What advantages do small businesses have in forming a strategic alliance with another small business as opposed to a small business forming an alliance with a large company? Give an example to support the answer.

Larry has asked five of his friends to serve on the board of directors of his new company.Why is this not a good idea?

Julie and Diane are starting a new company decorating wedding cakes that are unique in their design and structure.Both women are certified chefs and have ten years of experience between them.What issues should they consider in choosing between a general partnership and a limited liability company? Which form would you recommend?

Glory, an employee of a company, caused a traffic accident while on company business.Who will pay for the damages?

As it relates to new businesses, one function of a social network is to:

Collin's Classic for Children with Cancer is a non-profit organisation that sells shirts.The organisation will be taxed as a ____________.