Exam 9: Organizing a Business

A disadvantage of a corporation is that:

Which business structure provides the greatest opportunity for expansion?

When a firm expands into a country with few competitors, it is attempting to:

An advantage of global expansion may be:

A _____ is the type of business structure that provides the greatest amount of flexibility in managing.

A foreign firm operates in a country where the nation's president is removed from office during a coup. This is an example of _____ risk.

A disadvantage of a sole proprietorship is that:

Retained earnings are often used to:

An advantage of global expansion may be:

A U.S. automotive company purchases brake linings from a firm in Germany and promises to pay in euros in 30 days. Before the payment is made, the exchange rate between the dollar and the euro changes. This is an example of _____ risk.

A _____ is the simplest and easiest type of business to establish.

One method for corporations to raise money is by:

A disadvantage of a sole proprietorship is that:

A _____ is a business structure that has characteristics of both a corporation and a partnership.

Which business structure provides the greatest flexibility and independence?

An advantage of a corporation is that:

Ralph, the chief executive officer of XYZ Corporation, is attempting to convince the board of directors to expand the company. The owner and stockholders of XYZ feel that the company is big enough and does not need to expand. In this example:

An advantage of global expansion may be:

XYZ Corporation is a U.S. fruit company. It purchases bananas from India and Brazil for distribution to U.S. grocery stores. The bananas are considered _____ good.

Who owns a corporation?