Question 1

Compare and contrast a limited liability company and a benefit corporation.

Accepted Answer

The limited liability company (LLC)struc

Question 2

In a ________,the raider launches a public relations battle for shareholder votes,hoping to enlist enough votes to oust the board and management.

Accepted Answer

A)  guerilla blitz 
B)  proxy fight 
C)  tender offer 
D)  direct offer 
E)  white knight tactic 
A)  guerilla blitz 
B)  proxy fight 
C)  tender offer 
D)  direct offer 
E)  white knight tactic

Question 3

A sole proprietorship ________.

Accepted Answer

A)  is taxed as a separate corporation 
B)  requires immense paperwork 
C)  does not have a legal status 
D)  is owned by only one person 
E)  gives reduced control to the owner 
A)  is taxed as a separate corporation 
B)  requires immense paperwork 
C)  does not have a legal status 
D)  is owned by only one person 
E)  gives reduced control to the owner

Question 4

A master limited partnership cannot raise money by selling units of ownership to the general public.

Accepted Answer

A) True 
 B)False

Question 5

Board of directors has the responsibility for the overall direction of the company and the selection of top executives.

Accepted Answer

A) True 
 B)False

Question 6

A corporation itself has limited liability on its transactions.

Accepted Answer

A) True 
 B)False

Question 7

A(n)________ has most of the attributes of a regular corporation but adds the legal requirement that the company must also pursue a stated non-financial goal.

Accepted Answer

A)  limited liability corporation 
B)  general partnership 
C)  S corporation 
D)  sole proprietorship 
E)  benefit corporation 
A)  limited liability corporation 
B)  general partnership 
C)  S corporation 
D)  sole proprietorship 
E)  benefit corporation

Question 8

A ________ occurs when someone purchases a company's publicly-traded stock primarily by using borrowed funds,sometimes using the target company's assets as collateral for these loans.

Accepted Answer

A)  leveraged buyout 
B)  hostile takeover 
C)  forced joint venture 
D)  consolidation 
E)  strategic alliance 
A)  leveraged buyout 
B)  hostile takeover 
C)  forced joint venture 
D)  consolidation 
E)  strategic alliance

Question 9

With a ________,a targeted company invokes some move that makes it less valuable to the potential raider,with the hope of discouraging the takeover.

Accepted Answer

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

Question 10

A joint venture does not result in a separate legal entity.

Accepted Answer

A) True 
 B)False

Question 11

A group of college graduates starts a business.They want to give their business a structure such that their risk is limited to the amount they have invested in the business.They also want to avoid double taxation of the income that they generate from the business.Which of the following structures is most suitable to satisfy these wants?

Accepted Answer

A)  sole proprietorship 
B)  corporation 
C)  direct partnership 
D)  S corporation 
E)  general partnership 
A)  sole proprietorship 
B)  corporation 
C)  direct partnership 
D)  S corporation 
E)  general partnership

Question 12

A product-extension merger occurs when ________.

Accepted Answer

A)  two companies from unrelated industries unite to become a single company 
B)  different stages or levels of the same industry unite 
C)  different companies merge to increase global reach 
D)  a merger expands the mix of goods and services available for sale 
E)  a merger expands the geographic range of markets that it can serve 
A)  two companies from unrelated industries unite to become a single company 
B)  different stages or levels of the same industry unite 
C)  different companies merge to increase global reach 
D)  a merger expands the mix of goods and services available for sale 
E)  a merger expands the geographic range of markets that it can serve

Question 13

All partners have joint authority to make decisions for the firm in a general partnership.

Accepted Answer

A) True 
 B)False

Question 14

Who is the highest-ranked officer of a corporation?

Accepted Answer

A)  chief information officer 
B)  chief financial officer 
C)  chief operating officer 
D)  chief executive officer 
E)  chief technology officer 
A)  chief information officer 
B)  chief financial officer 
C)  chief operating officer 
D)  chief executive officer 
E)  chief technology officer

Question 15

The chief operating officer is the highest-ranking officer of a corporation.

Accepted Answer

A) True 
 B)False

Question 16

Compare and contrast sole proprietorships and general partnerships.

Accepted Answer

A sole proprietorship has only one owner

Question 17

Proxy is a document that authorizes another person to vote on behalf of a shareholder in a corporation.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is a valid observation of corporations?

Accepted Answer

A)  A corporation cannot own property of its own. 
B)  All corporations should sell its stock to the public. 
C)  The owners of a corporation are called directors. 
D)  A corporation is distinct from the people running it. 
E)  A corporation must be owned by less than fifty people. 
A)  A corporation cannot own property of its own. 
B)  All corporations should sell its stock to the public. 
C)  The owners of a corporation are called directors. 
D)  A corporation is distinct from the people running it. 
E)  A corporation must be owned by less than fifty people.

Question 19

A ________ merger occurs when companies in unrelated industries join to form a single entity.

Accepted Answer

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

Question 20

Which of the following statements is TRUE of the liability of investors in a corporation?

Accepted Answer

A)  Majority investors are personally liable, whereas minority investors are not personally liable. 
B)  Investors have personal liability for the business transactions in corporations. 
C)  Investor's liability is limited to the amount invested in the corporation. 
D)  Investors are personally liable for transactions, whereas their property is not liable. 
E)  Investors' property is liable for the business transactions but investors are not personally liable. 
A)  Majority investors are personally liable, whereas minority investors are not personally liable. 
B)  Investors have personal liability for the business transactions in corporations. 
C)  Investor's liability is limited to the amount invested in the corporation. 
D)  Investors are personally liable for transactions, whereas their property is not liable. 
E)  Investors' property is liable for the business transactions but investors are not personally liable.

Compare and contrast a limited liability company and a benefit corporation.

In a ________,the raider launches a public relations battle for shareholder votes,hoping to enlist enough votes to oust the board and management.

A sole proprietorship ________.

A master limited partnership cannot raise money by selling units of ownership to the general public.

Board of directors has the responsibility for the overall direction of the company and the selection of top executives.

A corporation itself has limited liability on its transactions.

A(n)________ has most of the attributes of a regular corporation but adds the legal requirement that the company must also pursue a stated non-financial goal.

A ________ occurs when someone purchases a company's publicly-traded stock primarily by using borrowed funds,sometimes using the target company's assets as collateral for these loans.

With a ________,a targeted company invokes some move that makes it less valuable to the potential raider,with the hope of discouraging the takeover.

A joint venture does not result in a separate legal entity.

A product-extension merger occurs when ________.

All partners have joint authority to make decisions for the firm in a general partnership.

Who is the highest-ranked officer of a corporation?

The chief operating officer is the highest-ranking officer of a corporation.

Compare and contrast sole proprietorships and general partnerships.

Proxy is a document that authorizes another person to vote on behalf of a shareholder in a corporation.

Which of the following is a valid observation of corporations?

A ________ merger occurs when companies in unrelated industries join to form a single entity.

Which of the following statements is TRUE of the liability of investors in a corporation?

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

Compare and contrast a limited liability company and a benefit corporation.

In a ________,the raider launches a public relations battle for shareholder votes,hoping to enlist enough votes to oust the board and management.

A sole proprietorship ________.

A master limited partnership cannot raise money by selling units of ownership to the general public.

Board of directors has the responsibility for the overall direction of the company and the selection of top executives.

A corporation itself has limited liability on its transactions.

A(n)________ has most of the attributes of a regular corporation but adds the legal requirement that the company must also pursue a stated non-financial goal.

A ________ occurs when someone purchases a company's publicly-traded stock primarily by using borrowed funds,sometimes using the target company's assets as collateral for these loans.

With a ________,a targeted company invokes some move that makes it less valuable to the potential raider,with the hope of discouraging the takeover.

A joint venture does not result in a separate legal entity.

A product-extension merger occurs when ________.

All partners have joint authority to make decisions for the firm in a general partnership.

Who is the highest-ranked officer of a corporation?

The chief operating officer is the highest-ranking officer of a corporation.

Compare and contrast sole proprietorships and general partnerships.

Proxy is a document that authorizes another person to vote on behalf of a shareholder in a corporation.

Which of the following is a valid observation of corporations?

A ________ merger occurs when companies in unrelated industries join to form a single entity.

Which of the following statements is TRUE of the liability of investors in a corporation?

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