Exam 4: Options for Organizing Business

When Dr. Hamilton, a local physical therapist, dies, her children sell her physical therapy practice to a young, new therapist who just moved to the area. What advantage will this new therapist gain by buying a business rather than starting a new one?

A disadvantage of the corporate form of business ownership is that the

Lawyers, Inc. is a large law practice with partners that specialize in real estate closings, estate planning, and divorce proceedings. Since each partner specializes in a different area of law, clients would be likely to

Sasha works for a large corporation, and sometimes, she finds it difficult to see how she fits into the corporate picture. However, recently, her company decides to establish an employee stock ownership plan. Which is a benefit of this type of plan?

Jeff and Maggie both work in the real estate market. One day, a great investment property comes on the market, and they decide to pool their money to buy and renovate it. They plan to spend six weeks on the renovation, and they hope to make a nice profit when they turn around and sell it. Jeff and Maggie's partnership is an example of a(n)

All of the following are keys to a successful partnership EXCEPT partners must

Which form of business ownership has the most freedom from government regulation?

An S corporation is taxed just like any other corporation.

The Dairy Farmers of America is an association of dairy farmers. Its agenda is not to make profits but to help its members market their products and to offer farmers a fair voice in national policymaking. Thus, The Dairy Farmers of America is an example of a(n)

April is a doctor who is forming her own medical practice. She wants her practice to be flexible, simple to run, and free from required meetings, minutes, or resolutions. Her goal is to blend the best characteristics of corporations, partnerships, and sole proprietorships. What form of business ownership seems most in-line with April's goals?

When two companies of different industries join together, it is an example of a

Nathan is a sole proprietor. How is the income earned in his business taxed?

In an S corporation, net profits and losses of the corporation pass to the owners. What effect does this have?

All of the following are true of 501(c)(3) organizations EXCEPT

What is a true statement about the board members of a corporation?

Smith, Taylor, and Jones is a law firm specializing in medical malpractice. Each owner has unlimited liability for the debts of the business and all owners share in the management of the firm. This law firm is an example of a

Sarah is a partner in a local coffee shop. Without consulting her partners, she ordered some expensive, specialty roasted coffee beans that she thought would greatly improve their business. However, their customers felt the coffee had a bitter taste and are no longer buying it. What impact will Sarah's decision have on her partners?

Books to Grow, a corporation owned and managed by volunteers, supplies books and educational materials to impoverished children in Latin America. Its focus is not on earning a profit but on serving the community. Books to Grow is an example of a(n)

Sweet Scents, a candle company, purchases Nature Candle Products, its direct competitor, by buying most of its stock. In this scenario, Sweet Scents is involved in a(n)

Ritesh wants to open his own bowling alley that will also serve alcoholic beverages and food. What will Ritesh have to do to start his business?