Exam 4: Options for Organizing Business

Mountain Outfitters is a large company that manufactures durable outdoor clothing. The company has stock that anyone can buy, sell, or trade, but since it is a large company, its stockholders are far removed from its management. What type of business is this?

David, Shannon, and Greg are starting a new accounting firm together, and they are drafting articles of partnership. All of the following are items they should include EXCEPT

Keesha, Mandy, and Isabel are starting their own pet grooming business, and they are drafting articles of partnership. What item should they be sure to include in their articles of partnership?

When it comes to borrowing funds, a sole proprietor

What is an advantage that corporations provide as a form of business ownership?

Geraldine is a professor at a local college who serves on the board of directors for a leading academic publisher. She is a valued member of the board because she brings her unique perspective from the field, and she is qualified, knowledgeable, and independent of the company. Geraldine is a(n)

When a business decides to incorporate, it will do so according to the laws of the ________ in which it incorporates.

Isaac starts a consulting firm with his friend Arnie. They decide to equally share the profits and have unlimited liability for the debts of their business. Such unlimited liability can be a distinct disadvantage for Isaac if he has

Summer Foods is a public corporation that is experiencing difficulty growing its vegetable products during an especially dry summer season. Wanting the flexibility to make decisions for restructuring the company's operations, its managers buy all the stock, which means the company is

Victor is asked to be a part of a new business venture for a revolutionary mechanism to repair Internet cables that are placed on the ocean floor. Since the business involves high risk, Victor does not want to be held completely liable for the firm's debts if the project fails. In this case, Victor is most likely to prefer to participate as a(n)

Why is it difficult for sole proprietorships to hire qualified employees?

The "limited" part of a limited liability company refers to the

In sole proprietorships, owners

A merger occurs when

Brewer Bikes, Inc. is a company that sells bicycles and accessories. It has been owned and operated by the Brewer family for 25 years. The Brewers own all the corporation's stock, and they are not required to disclose financial information publicly. What type of business is this?

Carmen owns a small gift shop and is solely responsible for its debts and liabilities. She is also entitled to all the profits the shop makes after paying off taxes and other expenses. Her business is an example of a(n)

The Food Palace, Inc. is a large grocery chain that was incorporated in the United States. Over the years, the corporation has grown, and it has now opened locations in five other nations. In those nations, The Food Palace is considered to be a(n)

In the context of the various forms of business ownership, discuss the two basic types of partnerships.

A(n) ________ is a form of business ownership that is taxed as though it were a partnership; it is very popular among entrepreneurs and represents almost half of all corporate filings.

Briefly discuss domestic, foreign, alien, private, and public corporations.