Exam 4: Choosing a Form of Business Ownership

Sandy is tired of her boss as well as corporate America in general.She decides she would like to start a business where no one tells her what to do,and she can always make the decisions.The best form of business for Sandy is a(n)

Builders Inc.,Real Estate Broker,Inc.,and Developers,Inc.form a business to purchase,develop,and build a shopping mall in Temecula,California.According to their agreement,the business will operate only until the mall is built,then the mall will be sold to Downtown Mall,Inc.,an owner and operator of shopping malls across the United States.Once the sale is complete,their business will be dissolved.What type of business have they formed?

Which of the following is an example of a vertical merger?

Meganpurchases shares of ownership in General Electric.These shares are referred to as

A technique used to gather enough stockholder votes to control a targeted company is a

The order of difficulty and expense,from most to least,when forming a business organization is as follows:

The form of business organization that experiences double taxation is the

Since someone must be responsible for a partnership's debts,a limited partnership must have at least one general partner.

What does double taxation mean?

Mercedes-Benz,which is chartered as a corporation in Germany but conducts much of its business in the United States,is known as a(n)____ in the United States.

Surplus funds of a not-for-profit organization are distributed to members of the board of directors.

About 85 percent of all business firms in the United States are sole proprietorships.

Michelle wants to start a business,but she is unsure of the legal form best for her.Short of cash,she has decided to take the form that is the least expensive and most flexible in terms of decision making and implementation.Which would you recommend?

A partnership formed to operate for a specific time period or to accomplish a specific purpose is known as a

Suppose Bill Gates,founder of Microsoft,is interested in a small software company.He may offer to purchase the stock of this company at a price that is just high enough to tempt the current stockholders.This action would be called a

The major reason why businesses change from sole proprietorships to other forms of ownership is to

In your own words,explain the differences among a horizontal merger,a vertical merger,and a conglomerate merger.

Which of the following is an advantage of the corporate form of organization?

Anyone with the money can purchase shares of PepsiCo's stock.This makes PepsiCo a(n)____ corporation.

A horizontal merger is a merger between firms in completely unrelated industries.