Question 1

If you want to go into business for yourself,the easiest way is a sole proprietorship.

Accepted Answer

A) True 
 B)False  True

Question 2

Which stockholders usually have the right to vote and control the board of directors?

Accepted Answer

A) Preferred 
B) Common 
C) Cumulative preferred 
D) Preemptive 
E) Favorite 
A) Preferred 
B) Common 
C) Cumulative preferred 
D) Preemptive 
E) Favorite B

Question 3

Which organizational form do you think would be best for Thomas and Bryan's company and why?

Accepted Answer

Students answers will vary because there is no absolute answer.The final decision will depend on the past business experience of Thomas and Bryan,their degree of financial stability,and their expectations in terms of growth.However they respond,students should defend their answer.

Question 4

When firms that make and sell similar products to the same customers merge,it is known as a horizontal merger.

Accepted Answer

A) True 
 B)False

Question 5

A merger occurs when one company buys another by buying its stock.

Accepted Answer

A) True 
 B)False

Question 6

When discussing corporations,What is a white knight?

Accepted Answer

A) A mythical hero in fairy tales 
B) An attempt to fend off a hostile takeover by selling stock at below market value 
C) When management requires the approval of a large majority of shareholders to allow a takeover to happen 
D) A more acceptable firm that is willing to acquire the firm threatened by hostile takeover 
E) A group of investors that has borrowed money to acquire a firm 
A) A mythical hero in fairy tales 
B) An attempt to fend off a hostile takeover by selling stock at below market value 
C) When management requires the approval of a large majority of shareholders to allow a takeover to happen 
D) A more acceptable firm that is willing to acquire the firm threatened by hostile takeover 
E) A group of investors that has borrowed money to acquire a firm

Question 7

When companies operating at different,but related,levels of an industry merge,it is known as a(n)

Accepted Answer

A) vertical merger. 
B) horizontal merger. 
C) acquisition. 
D) leveraged buyout. 
E) diagonal merger. 
A) vertical merger. 
B) horizontal merger. 
C) acquisition. 
D) leveraged buyout. 
E) diagonal merger.

Question 8

One of the most popular and easiest to establish forms of business in the United States is the

Accepted Answer

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

Question 9

Which of the following requires owners to perform many functions and possess diverse skills to make decisions?

Accepted Answer

A) Corporation 
B) Partnership 
C) Sole proprietorship 
D) Cooperative 
E) Holding company 
A) Corporation 
B) Partnership 
C) Sole proprietorship 
D) Cooperative 
E) Holding company

Question 10

What are some of the advantages and disadvantages of Thomas and Bryan forming a corporation?

Accepted Answer

The major advantages of Thomas and Bryan

Question 11

Which form of business organization is the least used in the U.S.?

Accepted Answer

A) S-corporation 
B) Franchise 
C) Sole proprietorship 
D) Corporation 
E) Partnership 
A) S-corporation 
B) Franchise 
C) Sole proprietorship 
D) Corporation 
E) Partnership

Question 12

A sole proprietorship is a popular form of business because

Accepted Answer

A) it is heavily regulated by the government. 
B) it is taxed more than other forms. 
C) it is hard to dissolve. 
D) the proprietor does not have direct control. 
E) it is easy to form. 
A) it is heavily regulated by the government. 
B) it is taxed more than other forms. 
C) it is hard to dissolve. 
D) the proprietor does not have direct control. 
E) it is easy to form.

Question 13

In creating a corporation,once the articles of incorporation are filed with the appropriate state office,the state may then issue a

Accepted Answer

A) corporate chapter. 
B) corporate contract. 
C) corporate charter. 
D) corporate collaboration. 
E) corporate commentary. 
A) corporate chapter. 
B) corporate contract. 
C) corporate charter. 
D) corporate collaboration. 
E) corporate commentary.

Question 14

When a company offers to buy some or all of another company's stock at a premium price,it is a(n)

Accepted Answer

A) acquisition. 
B) leveraged buyout. 
C) merger. 
D) hostile offer. 
E) tender offer. 
A) acquisition. 
B) leveraged buyout. 
C) merger. 
D) hostile offer. 
E) tender offer.

Question 15

In the US,men are twice as likely as women to start their own business.

Accepted Answer

A) True 
 B)False

Question 16

Define the partnership form of business organization.What are its advantages?

Accepted Answer

A partnership is defined by the Uniform

Question 17

When are limited partnerships generally used?

Accepted Answer

A) When one partner has more money than the others 
B) They are used most of the time for many reasons 
C) Limited partnerships are almost never used 
D) When all partners wish to share liability equally 
E) When the project is risky and the chance of loss is great 
A) When one partner has more money than the others 
B) They are used most of the time for many reasons 
C) Limited partnerships are almost never used 
D) When all partners wish to share liability equally 
E) When the project is risky and the chance of loss is great

Question 18

Corporations distribute profits to their owners in the form of

Accepted Answer

A) tax-free dividends. 
B) interest. 
C) retained earnings. 
D) dividends. 
E) bribes. 
A) tax-free dividends. 
B) interest. 
C) retained earnings. 
D) dividends. 
E) bribes.

Question 19

According to the Internal Revenue Service,

Accepted Answer

A) profitable partnerships pay taxes before distributing profits. 
B) partners report their share of profits as personal income. 
C) partners pay no taxes. 
D) partners have the most advantageous tax structure. 
E) all of the above. 
A) profitable partnerships pay taxes before distributing profits. 
B) partners report their share of profits as personal income. 
C) partners pay no taxes. 
D) partners have the most advantageous tax structure. 
E) all of the above.

Question 20

The legal documents that identify the basic agreements between partners are called

Accepted Answer

A) proposals of partnership. 
B) a partnership charter. 
C) agreements of partnership. 
D) articles of partnership. 
E) a partnership contract. 
A) proposals of partnership. 
B) a partnership charter. 
C) agreements of partnership. 
D) articles of partnership. 
E) a partnership contract.

If you want to go into business for yourself,the easiest way is a sole proprietorship.

Which stockholders usually have the right to vote and control the board of directors?

Which organizational form do you think would be best for Thomas and Bryan's company and why?

When firms that make and sell similar products to the same customers merge,it is known as a horizontal merger.

A merger occurs when one company buys another by buying its stock.

When discussing corporations,What is a white knight?

When companies operating at different,but related,levels of an industry merge,it is known as a(n)

One of the most popular and easiest to establish forms of business in the United States is the

Which of the following requires owners to perform many functions and possess diverse skills to make decisions?

What are some of the advantages and disadvantages of Thomas and Bryan forming a corporation?

Which form of business organization is the least used in the U.S.?

A sole proprietorship is a popular form of business because

In creating a corporation,once the articles of incorporation are filed with the appropriate state office,the state may then issue a

When a company offers to buy some or all of another company's stock at a premium price,it is a(n)

In the US,men are twice as likely as women to start their own business.

Define the partnership form of business organization.What are its advantages?

When are limited partnerships generally used?

Corporations distribute profits to their owners in the form of

According to the Internal Revenue Service,

The legal documents that identify the basic agreements between partners are called

The Dynamics of Business and Economics

Business Ethics and Social Responsibility

Business in a Borderless World

Small Business, Entrepreneurship, and Franchising

The Nature of Management

Organization, Teamwork, and Communication

Managing Service and Manufacturing Operations

Motivating the Workforce

Managing Human Resources

Customer Driven Marketing

Dimensions of Marketing Strategy

Digital Marketing and Social Networking

Money and the Financial System

Accounting and Financial Statements

Financial Management and Securities Markets

Filters

Exam 4: Options for Organizing Business

If you want to go into business for yourself,the easiest way is a sole proprietorship.

Which stockholders usually have the right to vote and control the board of directors?

Which organizational form do you think would be best for Thomas and Bryan's company and why?

When firms that make and sell similar products to the same customers merge,it is known as a horizontal merger.

A merger occurs when one company buys another by buying its stock.

When discussing corporations,What is a white knight?

When companies operating at different,but related,levels of an industry merge,it is known as a(n)

One of the most popular and easiest to establish forms of business in the United States is the

Which of the following requires owners to perform many functions and possess diverse skills to make decisions?

What are some of the advantages and disadvantages of Thomas and Bryan forming a corporation?

Which form of business organization is the least used in the U.S.?

A sole proprietorship is a popular form of business because

In creating a corporation,once the articles of incorporation are filed with the appropriate state office,the state may then issue a

When a company offers to buy some or all of another company's stock at a premium price,it is a(n)

In the US,men are twice as likely as women to start their own business.

Define the partnership form of business organization.What are its advantages?

When are limited partnerships generally used?

Corporations distribute profits to their owners in the form of

According to the Internal Revenue Service,

The legal documents that identify the basic agreements between partners are called

The Dynamics of Business and Economics

Business Ethics and Social Responsibility

Business in a Borderless World

Small Business, Entrepreneurship, and Franchising

The Nature of Management

Organization, Teamwork, and Communication

Managing Service and Manufacturing Operations

Motivating the Workforce

Managing Human Resources

Customer Driven Marketing

Dimensions of Marketing Strategy

Digital Marketing and Social Networking

Money and the Financial System

Accounting and Financial Statements

Financial Management and Securities Markets

Filters