Exam 8: Forms of Business Ownership

The purchase and subsequent takeover of Marks Work Warehouse by Canadian Tire is an example of which of the following?

The development of new drugs is very expensive. For this reason Genentech, a large biotechnical company, has entered into a business arrangement with Swiss-owned Roche to develop a vaccine for tuberculosis. When the vaccine is developed or when the two biotechnical companies determine the vaccine cannot be developed using their current methodology, this relationship will dissolve. What type of relationship is it?

When Markum Corp., a manufacturer of cardboard printing equipment, purchased Pretak Ltd., a manufacturer of printers for printing on plastic, it was an example of an acquisition.

What do a company's shareholders have the right to do?

EMC, a data storage company, took over a company called Documentation, which makes software designed to help companies organize data such as emails, medical records, and spreadsheets. This is an example of which of the following for EMC?

What is a corporation that is owned by either the federal or provincial government?

Which of the following is a disadvantage associated with a corporation?

What is a corporation whose number of shareholders is limited and whose shares are not traded on a stock exchange?

Which of the following is created when two or more companies form a special entity to undertake a specific project, usually for a specific period of time?

In a partnership, only general partners have unlimited liability.

Corporations face fewer government restrictions and regulations than sole proprietorships and partnerships.

What is the biggest difference between a general partnership and a limited partnership?

For partnerships to be legal, they must be established in writing.

When Ashland Plastics and Melamine Chemicals formed a joint venture to develop flame-resistant plastic sheeting, the relationship most likely ended as soon as the project was completed.

Mergers create an advantage when competing in the global marketplace.

Which form of business ownership is an ideal way to test new business ideas?

What is a legal entity with its own rights and responsibilities separate from its shareholders who are not liable?

Which form of business ownership is easiest to dissolve?

Which of the following is a disadvantage of sole proprietor ownership?

The corporation's board of directors hire the corporate officers.