Exam 4: Choosing a Form of Business Ownership

The top governing body of a corporation is known as the

All of the following are advantages of the partnership form of organization except

Corporate officers are elected by the stockholders.

The courts have held that an oral partnership agreement is not legally binding and,therefore,cannot be enforced.

What are the primary responsibilities of the board of directors? What do corporate officers manage?

Unlimited liability means

How would you go about incorporating a business?

Which of the following would least likely be stated in the articles of partnership?

A limited-liability company is taxed like a corporation.

A ____ is a form that enables stockholders to allow someone else to vote for them.

As a limited partner in a construction business,Joe

QPD Corporation discovered financial information about its prime competitor which it used to its advantage.QPD did not obtain the information from any illegal source or through any illegal means.As discussed by the authors,which of the following disadvantages of having a corporate form of business is responsible for QPD's knowledge of the details of its competitor's financial situation?

Bart inherited an interest in an open publicly traded corporation shortly after he graduated from high school.He has now graduated from college and would like to sell his ownership in order to purchase a house.Which of the following best describes the sale process?

Juarez would like to open a Honduran restaurant in San Diego.He has determined that,due to the large Hispanic population there,the demand for a Honduran restaurant should be high.He has studied the demographics of the area,the competing businesses,the costs of rent,electricity,gas,licensing,insurance,and all of the costs associated with payroll taxes and employee liabilities.He has determined that he can run the business with a minimum of four people if they work in six-hour shifts and the business is open from 9 A.m.to 9 p.m.After completing all of his costs calculations and subtracting them from his projected income for the first year,he has determined that he will be about two thousand dollars a month short.He had decided to run the business as a sole proprietorship but is now reconsidering this decision.He needs money but he doesn't want to give up control or go into debt.What would be the best form of business for him to have under these circumstances?

When Meredith decides that she no longer wants her Radio Shack stock,she will discover that a related benefit of a corporation is

With regard to limited-liability companies,which of the following statements is false?

Which form of business is the easiest to start?

A limited-liability company extends the concept of personal-asset protection to small business owners.

David,Richard,and Anthony are partners in a law firm under a typical partnership agreement in which each owns an equal share of the business.Richard dies suddenly of a heart attack.What will most likely become of the partnership?

Amanda wants to start a business to sell handmade jewelry.She is very competent at making the jewelry and teaching others to make it,and she has saved a reasonable amount of money to start the business.Who of the following would make the best partner for Amanda?