Question 1

The federal government recognizes a sole proprietorship as an independent taxable entity.

Accepted Answer

A) True 
 B)False

Question 2

The stock of a private corporation is made available for purchase by the public.

Accepted Answer

A) True 
 B)False

Question 3

A benefit corporation must pursue a stated non-financial goal.

Accepted Answer

A) True 
 B)False

Question 4

Profits of sole proprietorships ________.

Accepted Answer

A)  reach shareholders through intermediaries 
B)  flow directly to the owners 
C)  are considered fixed assets 
D)  are taxed at corporate rates 
E)  are subject to double taxation 
A)  reach shareholders through intermediaries 
B)  flow directly to the owners 
C)  are considered fixed assets 
D)  are taxed at corporate rates 
E)  are subject to double taxation

Question 5

Pacific Electronics is a Swiss corporation doing business in the U.S.It was incorporated in Switzerland,in the year 1997.The company sells products such as electronic measuring devices,microprocessors,and microcontrollers.Pacific Electronics is called a(n)________.

Accepted Answer

A)  alien corporation 
B)  foreign corporation 
C)  domestic corporation 
D)  external company 
E)  unlimited company 
A)  alien corporation 
B)  foreign corporation 
C)  domestic corporation 
D)  external company 
E)  unlimited company

Question 6

A potentially significant disadvantage of a partnership is that ________.

Accepted Answer

A)  it involves double taxation of the income generated 
B)  income tax is not straightforward and is complex 
C)  it has more chances for disagreement and conflict 
D)  it does not present opportunities to share costs 
E)  the amount of money generated in a partnership is low 
A)  it involves double taxation of the income generated 
B)  income tax is not straightforward and is complex 
C)  it has more chances for disagreement and conflict 
D)  it does not present opportunities to share costs 
E)  the amount of money generated in a partnership is low

Question 7

A company decides to establish a relationship with a local company in order to better its business in a foreign country.The company must choose joint ventures ahead of mergers and acquisitions if it wants to ________.

Accepted Answer

A)  establish a company that is totally different 
B)  create a single management structure 
C)  create a unified business structure 
D)  establish a well-structured arrangement 
E)  avoid disrupting the original companies too much 
A)  establish a company that is totally different 
B)  create a single management structure 
C)  create a unified business structure 
D)  establish a well-structured arrangement 
E)  avoid disrupting the original companies too much

Question 8

Compare and contrast private corporations and public corporations.

Accepted Answer

The stock of a private corporation,also

Question 9

Albama Associates is a consulting firm owned by a few entrepreneurs.Rogo Consulting,a large consulting firm,tries to buy shares from some of the shareholders of Albama to obtain control of the company without making a formal acquisition proposal with the management.Albama's management invites a third party to acquire the company to prevent a hostile takeover by Rogo Consulting.This approach used by Albama to prevent hostile takeover is an example of a ________.

Accepted Answer

A)  white knight tactic 
B)  counteroffer 
C)  proxy fight 
D)  direct offer 
E)  poison pill defense 
A)  white knight tactic 
B)  counteroffer 
C)  proxy fight 
D)  direct offer 
E)  poison pill defense

Question 10

Distinguish between strategic alliances and joint ventures.

Accepted Answer

While strategic alliances avoid much of

Question 11

Explain the advantages of operating as a sole proprietorship.

Accepted Answer

Operating as a sole proprietorship offer

Question 12

Froxer Electronics is an electronic appliance manufacturer.The company merges with a food manufacturer to form a larger company.This is an example of a ________ merger.

Accepted Answer

A)  product-extension 
B)  vertical 
C)  retail 
D)  market-extension 
E)  conglomerate 
A)  product-extension 
B)  vertical 
C)  retail 
D)  market-extension 
E)  conglomerate

Question 13

In a(n)________,two companies create a new,third entity that then purchases the two original companies.

Accepted Answer

A)  limited partnership 
B)  consolidation 
C)  acquisition 
D)  joint venture 
E)  strategic alliance 
A)  limited partnership 
B)  consolidation 
C)  acquisition 
D)  joint venture 
E)  strategic alliance

Question 14

What is shareholder activism?

Accepted Answer

Shareholder activism refers to activitie

Question 15

Which of the following business structures is the most complicated and expensive?

Accepted Answer

A)  unlimited partnership 
B)  corporation 
C)  general partnership 
D)  sole proprietorship 
E)  limited partnership 
A)  unlimited partnership 
B)  corporation 
C)  general partnership 
D)  sole proprietorship 
E)  limited partnership

Question 16

RK Associates is a firm incorporated in the state of Delaware.The company has operations in thirteen states.However,the company does not have any facilities in countries other than the United States.RK Associates is a(n)________.

Accepted Answer

A)  international company 
B)  local corporation 
C)  domestic company 
D)  alien corporation 
E)  foreign corporation 
A)  international company 
B)  local corporation 
C)  domestic company 
D)  alien corporation 
E)  foreign corporation

Question 17

A company that is incorporated in one state (frequently the state of Delaware,where incorporation laws are more lenient)but that does business in several other states where it is registered is called a(n)________.

Accepted Answer

A)  foreign corporation 
B)  domestic corporation 
C)  global corporation 
D)  alien corporation 
E)  international corporation 
A)  foreign corporation 
B)  domestic corporation 
C)  global corporation 
D)  alien corporation 
E)  international corporation

Question 18

In a general partnership,________.

Accepted Answer

A)  all partners have joint authority to make decisions 
B)  all partners have limited liability 
C)  the number of partners is limited to five 
D)  units of ownership are sold to the general public 
E)  risk is limited to the amount invested in a partnership 
A)  all partners have joint authority to make decisions 
B)  all partners have limited liability 
C)  the number of partners is limited to five 
D)  units of ownership are sold to the general public 
E)  risk is limited to the amount invested in a partnership

Question 19

Select an organization of your choice.Construct a model that shows the corporate governance structure of the organization.

Accepted Answer

The students should identify a company a

Question 20

Compare and contrast mergers and acquisitions.

Accepted Answer

In a merger,two companies join to form a

The federal government recognizes a sole proprietorship as an independent taxable entity.

The stock of a private corporation is made available for purchase by the public.

A benefit corporation must pursue a stated non-financial goal.

Profits of sole proprietorships ________.

Pacific Electronics is a Swiss corporation doing business in the U.S.It was incorporated in Switzerland,in the year 1997.The company sells products such as electronic measuring devices,microprocessors,and microcontrollers.Pacific Electronics is called a(n)________.

A potentially significant disadvantage of a partnership is that ________.

A company decides to establish a relationship with a local company in order to better its business in a foreign country.The company must choose joint ventures ahead of mergers and acquisitions if it wants to ________.

Compare and contrast private corporations and public corporations.

Distinguish between strategic alliances and joint ventures.

Explain the advantages of operating as a sole proprietorship.

Froxer Electronics is an electronic appliance manufacturer.The company merges with a food manufacturer to form a larger company.This is an example of a ________ merger.

In a(n)________,two companies create a new,third entity that then purchases the two original companies.

What is shareholder activism?

Which of the following business structures is the most complicated and expensive?

RK Associates is a firm incorporated in the state of Delaware.The company has operations in thirteen states.However,the company does not have any facilities in countries other than the United States.RK Associates is a(n)________.

A company that is incorporated in one state (frequently the state of Delaware,where incorporation laws are more lenient)but that does business in several other states where it is registered is called a(n)________.

In a general partnership,________.

Select an organization of your choice.Construct a model that shows the corporate governance structure of the organization.

Compare and contrast mergers and acquisitions.

Developing a Business Mindset

Understanding Basic Economics

The Global Marketplace

Business Ethics and Corporate Social Responsibility

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Distribution and Marketing Logistics

Customer Communication

Financial Information and Accounting Concepts

Financial Management

Financial Markets and Investment Strategies

The Money Supply and Banking Systems

Filters

Exam 5: Forms of Ownership

The federal government recognizes a sole proprietorship as an independent taxable entity.

The stock of a private corporation is made available for purchase by the public.

A benefit corporation must pursue a stated non-financial goal.

Profits of sole proprietorships ________.

Pacific Electronics is a Swiss corporation doing business in the U.S.It was incorporated in Switzerland,in the year 1997.The company sells products such as electronic measuring devices,microprocessors,and microcontrollers.Pacific Electronics is called a(n)________.

A potentially significant disadvantage of a partnership is that ________.

A company decides to establish a relationship with a local company in order to better its business in a foreign country.The company must choose joint ventures ahead of mergers and acquisitions if it wants to ________.

Compare and contrast private corporations and public corporations.

Distinguish between strategic alliances and joint ventures.

Explain the advantages of operating as a sole proprietorship.

Froxer Electronics is an electronic appliance manufacturer.The company merges with a food manufacturer to form a larger company.This is an example of a ________ merger.

In a(n)________,two companies create a new,third entity that then purchases the two original companies.

What is shareholder activism?

Which of the following business structures is the most complicated and expensive?

RK Associates is a firm incorporated in the state of Delaware.The company has operations in thirteen states.However,the company does not have any facilities in countries other than the United States.RK Associates is a(n)________.

A company that is incorporated in one state (frequently the state of Delaware,where incorporation laws are more lenient)but that does business in several other states where it is registered is called a(n)________.

In a general partnership,________.

Select an organization of your choice.Construct a model that shows the corporate governance structure of the organization.

Compare and contrast mergers and acquisitions.

Developing a Business Mindset

Understanding Basic Economics

The Global Marketplace

Business Ethics and Corporate Social Responsibility

Entrepreneurship and Small Business Ownership

Management Roles, Functions, and Skills

Organization and Teamwork

Production Systems

Employee Motivation

Human Resources Management

Labor Relations

The Art and Science of Marketing

Product and Pricing Strategies

Distribution and Marketing Logistics

Customer Communication

Financial Information and Accounting Concepts

Financial Management

Financial Markets and Investment Strategies

The Money Supply and Banking Systems

Filters