Question 1

Describe the array of advantages of a corporation.

Accepted Answer

Limited liability is an important advant

Question 2

To gain access to one another's markets,several U.S.and Japanese automobile manufacturers (for example,Chrysler and Mitsubishi)are engaging in temporary alliances to manufacture and market certain models of cars.These types of partnerships are known as

Accepted Answer

A)  limited-liability companies. 
B)  S-corporations. 
C)  cooperatives. 
D)  joint ventures. 
E)  foreign corporations. 
A)  limited-liability companies. 
B)  S-corporations. 
C)  cooperatives. 
D)  joint ventures. 
E)  foreign corporations.

Question 3

Phillip and Dwight have sold stock to eight of their friends and have enough money to expand the business and to open another store.During a shareholders' meeting,Phillip,Dwight,and the eight other shareholders unanimously agreed that it would be better to pass through the company's profits and losses like a partnership.All of the shareholders are individuals and United States citizens.The shareholders could vote to change the corporation into a(n)

Accepted Answer

A)  S-corporation. 
B)  limited liability company. 
C)  alien corporation. 
D)  foreign corporation. 
A)  S-corporation. 
B)  limited liability company. 
C)  alien corporation. 
D)  foreign corporation.

Question 4

All corporations operate primarily for profit.

Accepted Answer

A) True 
 B)False

Question 5

Explain the differences among a domestic,a foreign,and an alien corporation.

Accepted Answer

A domestic corporation is an incorporate

Question 6

Because of unlimited liability,it is easy for sole proprietors to borrow large sums of money.

Accepted Answer

A) True 
 B)False

Question 7

Describe the merger trends affecting American business.

Accepted Answer

Most experts predict that mergers and ac

Question 8

What are some of the disadvantages of partnerships? Are the disadvantages enough to dissuade you from forming this type of business ownership?

Accepted Answer

Answers will vary.Disadvantages of the p

Question 9

Tyler would like to own a train store and operate it by himself.He has enough money to open it and operate it on his own and elects to do so.What form of business is this?

Accepted Answer

A)  Sole proprietorship. 
B)  Partnership. 
C)  LLC. 
D)  S-corporation. 
A)  Sole proprietorship. 
B)  Partnership. 
C)  LLC. 
D)  S-corporation.

Question 10

Walmart is incorporated in Arkansas,the state of its origins and headquarters.Within Arkansas,Walmart is classified as a(n)____ corporation.

Accepted Answer

A)  privately-held 
B)  foreign 
C)  alien 
D)  domestic 
E)  hometown 
A)  privately-held 
B)  foreign 
C)  alien 
D)  domestic 
E)  hometown

Question 11

Twenty-five young investors decided that they want to start a dating service;however,they do not want to be held personally liable for losses of the company.They want to avoid double taxation.Which type of business organization would best fit the needs of these individuals?

Accepted Answer

A)  Corporation 
B)  Closed corporation 
C)  Partnership 
D)  S-corporation 
E)  Limited cooperative 
A)  Corporation 
B)  Closed corporation 
C)  Partnership 
D)  S-corporation 
E)  Limited cooperative

Question 12

Hector is considering expanding his business and has several potential new investors in mind.He originally wanted to form an S-corporation to protect the liability of the investors,but he is now considering a limited-liability company instead because he knows there can be only ____ stockholders in an S-corporation.

Accepted Answer

A)  10 
B)  25 
C)  50 
D)  100 
E)  108 
A)  10 
B)  25 
C)  50 
D)  100 
E)  108

Question 13

According to the text,which of the following statements is false?

Accepted Answer

A)  The sole proprietor is often the sole manager. 
B)  Many sole proprietors cannot afford to hire the help they need. 
C)  Potential employees often feel there is no room for advancement in a sole proprietorship. 
D)  When compared to larger businesses,the lure of employee benefits is one reason why people go to work for sole proprietorships. 
E)  The sole proprietor often finds it hard to keep competent employees. 
A)  The sole proprietor is often the sole manager. 
B)  Many sole proprietors cannot afford to hire the help they need. 
C)  Potential employees often feel there is no room for advancement in a sole proprietorship. 
D)  When compared to larger businesses,the lure of employee benefits is one reason why people go to work for sole proprietorships. 
E)  The sole proprietor often finds it hard to keep competent employees.

Question 14

Corporations account for about 82 percent of all sales revenues.

Accepted Answer

A) True 
 B)False

Question 15

An S-corporation can have no more than twenty stockholders.

Accepted Answer

A) True 
 B)False

Question 16

When compared to partnerships and corporations,sole proprietorships account for ____ percent of total annual sales.

Accepted Answer

A)  34 
B)  16 
C)  9 
D)  4 
E)  2 
A)  34 
B)  16 
C)  9 
D)  4 
E)  2

Question 17

Legally,a partnership must

Accepted Answer

A)  have at least one limited partner. 
B)  have at least one general partner. 
C)  make all owners general partners. 
D)  not have any general partners. 
E)  designate a limited partner to be responsible for all debts of the partnership. 
A)  have at least one limited partner. 
B)  have at least one general partner. 
C)  make all owners general partners. 
D)  not have any general partners. 
E)  designate a limited partner to be responsible for all debts of the partnership.

Question 18

The most effective form of business organization for raising capital is the

Accepted Answer

A)  joint venture. 
B)  syndicate. 
C)  sole proprietorship. 
D)  partnership. 
E)  corporation. 
A)  joint venture. 
B)  syndicate. 
C)  sole proprietorship. 
D)  partnership. 
E)  corporation.

Question 19

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

Accepted Answer

A)  The purchase of a catering firm by Delta Airlines 
B)  The purchase of Marathon Oil Company by U.S.Steel 
C)  The purchase of Kentucky Fried Chicken by PepsiCo 
D)  The purchase of Sam's Meat Packing Company by the Kroger supermarket chain 
E)  The purchase of Mobil Oil by Exxon 
A)  The purchase of a catering firm by Delta Airlines 
B)  The purchase of Marathon Oil Company by U.S.Steel 
C)  The purchase of Kentucky Fried Chicken by PepsiCo 
D)  The purchase of Sam's Meat Packing Company by the Kroger supermarket chain 
E)  The purchase of Mobil Oil by Exxon

Question 20

A voluntary association of two or more people acting as co-owners of a business is known as a partnership.

Accepted Answer

A) True 
 B)False

Describe the array of advantages of a corporation.

To gain access to one another's markets,several U.S.and Japanese automobile manufacturers (for example,Chrysler and Mitsubishi)are engaging in temporary alliances to manufacture and market certain models of cars.These types of partnerships are known as

All corporations operate primarily for profit.

Explain the differences among a domestic,a foreign,and an alien corporation.

Because of unlimited liability,it is easy for sole proprietors to borrow large sums of money.

Describe the merger trends affecting American business.

What are some of the disadvantages of partnerships? Are the disadvantages enough to dissuade you from forming this type of business ownership?

Tyler would like to own a train store and operate it by himself.He has enough money to open it and operate it on his own and elects to do so.What form of business is this?

Walmart is incorporated in Arkansas,the state of its origins and headquarters.Within Arkansas,Walmart is classified as a(n)____ corporation.

Twenty-five young investors decided that they want to start a dating service;however,they do not want to be held personally liable for losses of the company.They want to avoid double taxation.Which type of business organization would best fit the needs of these individuals?

According to the text,which of the following statements is false?

Corporations account for about 82 percent of all sales revenues.

An S-corporation can have no more than twenty stockholders.

When compared to partnerships and corporations,sole proprietorships account for ____ percent of total annual sales.

Legally,a partnership must

The most effective form of business organization for raising capital is the

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

A voluntary association of two or more people acting as co-owners of a business is known as a partnership.

Exploring the World of Business and Economics

Ethics and Social Responsibility in Business

Global Business

Small Business,Entrepreneurship,and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Exploring Social Media and E-Business

Using Management and Accounting Information

Mastering Financial Management

Understanding Personal Finances and Investments

Enhancing Union-Management Relations

Risk Management and Insurance

Business Law regulation and Taxation

Filters

Exam 4: Choosing a Form of Business Ownership

Describe the array of advantages of a corporation.

To gain access to one another's markets,several U.S.and Japanese automobile manufacturers (for example,Chrysler and Mitsubishi)are engaging in temporary alliances to manufacture and market certain models of cars.These types of partnerships are known as

All corporations operate primarily for profit.

Explain the differences among a domestic,a foreign,and an alien corporation.

Because of unlimited liability,it is easy for sole proprietors to borrow large sums of money.

Describe the merger trends affecting American business.

What are some of the disadvantages of partnerships? Are the disadvantages enough to dissuade you from forming this type of business ownership?

Tyler would like to own a train store and operate it by himself.He has enough money to open it and operate it on his own and elects to do so.What form of business is this?

Walmart is incorporated in Arkansas,the state of its origins and headquarters.Within Arkansas,Walmart is classified as a(n)____ corporation.

Twenty-five young investors decided that they want to start a dating service;however,they do not want to be held personally liable for losses of the company.They want to avoid double taxation.Which type of business organization would best fit the needs of these individuals?

According to the text,which of the following statements is false?

Corporations account for about 82 percent of all sales revenues.

An S-corporation can have no more than twenty stockholders.

When compared to partnerships and corporations,sole proprietorships account for ____ percent of total annual sales.

Legally,a partnership must

The most effective form of business organization for raising capital is the

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

A voluntary association of two or more people acting as co-owners of a business is known as a partnership.

Exploring the World of Business and Economics

Ethics and Social Responsibility in Business

Global Business

Small Business,Entrepreneurship,and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Exploring Social Media and E-Business

Using Management and Accounting Information

Mastering Financial Management

Understanding Personal Finances and Investments

Enhancing Union-Management Relations

Risk Management and Insurance

Business Law regulation and Taxation

Filters