Question 1

What are the advantages of sole proprietorships over other forms of business organization?

Accepted Answer

The advantages of sole proprietorships a

Question 2

All of the following are advantages of a sole proprietorship except

Accepted Answer

A) ease of formation. 
B) secrecy. 
C) unlimited liability. 
D) control of the business. 
E) limited government regulation. 
A) ease of formation. 
B) secrecy. 
C) unlimited liability. 
D) control of the business. 
E) limited government regulation.

Question 3

Selling interest in a partnership may be difficult because

Accepted Answer

A) partnerships are subject to unlimited liability. 
B) partnerships can't issue bonds. 
C) of regulatory controls. 
D) it is difficult to place a value on a share of a partnership. 
E) of double taxation. 
A) partnerships are subject to unlimited liability. 
B) partnerships can't issue bonds. 
C) of regulatory controls. 
D) it is difficult to place a value on a share of a partnership. 
E) of double taxation.

Question 4

A corporation doing business outside the state in which it is chartered is known as a(n)

Accepted Answer

A) private corporation. 
B) multi-state corporation. 
C) domestic corporation. 
D) alien corporation. 
E) foreign corporation. 
A) private corporation. 
B) multi-state corporation. 
C) domestic corporation. 
D) alien corporation. 
E) foreign corporation.

Question 5

A limited partnership always has at least one general partner,who assumes unlimited liability.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is an advantage of a partnership?

Accepted Answer

A) Unlimited liability 
B) Life of partnership 
C) Selling a partnership 
D) Limited funding sources 
E) Ease of organization 
A) Unlimited liability 
B) Life of partnership 
C) Selling a partnership 
D) Limited funding sources 
E) Ease of organization

Question 7

All states require partnerships to have articles of partnership.

Accepted Answer

A) True 
 B)False

Question 8

In a partnership,if the goals of one partner change,the result may be friction and even legal disputes.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following forms of business organization restricts the number and type of shareholder?

Accepted Answer

A) Sole proprietorship 
B) Co-op 
C) Limited liability company 
D) S-corporation 
E) Partnership 
A) Sole proprietorship 
B) Co-op 
C) Limited liability company 
D) S-corporation 
E) Partnership

Question 10

When a group of investors borrows money to buy a company or division,using the company's assets to guarantee the loan,it is called a(n)

Accepted Answer

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

Question 11

Which characteristic of a sole proprietorship can be considered both an advantage and a disadvantage?

Accepted Answer

A) Taxation 
B) Fund sources 
C) Liability 
D) Continuity 
E) Secrecy 
A) Taxation 
B) Fund sources 
C) Liability 
D) Continuity 
E) Secrecy

Question 12

Sole proprietorships have the least degree of secrecy.

Accepted Answer

A) True 
 B)False

Question 13

Why is it more difficult to value a partnership share than a share of stock in a corporation,for example?

Accepted Answer

Because no public value is placed on the

Question 14

What is a vertical merger and why would a firm attempt one? What are the benefits?

Accepted Answer

When companies operating at different bu

Question 15

Which of the following is a disadvantage of a partnership?

Accepted Answer

A) Difficulty of selling ownership 
B) Ease of organizing business 
C) Specialization of partners 
D) Relatively fast decision making 
E) Limited government regulation 
A) Difficulty of selling ownership 
B) Ease of organizing business 
C) Specialization of partners 
D) Relatively fast decision making 
E) Limited government regulation

Question 16

Big City Financial is attempting to avoid a hostile takeover by a corporate raider by allowing stockholders to buy more shares of stock at prices lower than current market value.Which of the following methods is being used to avoid the takeover?

Accepted Answer

A) A leveraged buyout 
B) A tender offer 
C) A white knight 
D) A poison pill 
E) Shark repellant 
A) A leveraged buyout 
B) A tender offer 
C) A white knight 
D) A poison pill 
E) Shark repellant

Question 17

Thomas thinks that organizing as a partnership would be best because

Accepted Answer

A) it is the most complicated to form. 
B) they are a small company and do not need to be a corporation. 
C) it gives them limited liability. 
D) it would allow them to rely on their own financial resources and talents. 
E) Thomas actually thinks that sole proprietorship would be best. 
A) it is the most complicated to form. 
B) they are a small company and do not need to be a corporation. 
C) it gives them limited liability. 
D) it would allow them to rely on their own financial resources and talents. 
E) Thomas actually thinks that sole proprietorship would be best.

Question 18

Lack of control is a disadvantage of sole proprietorships.

Accepted Answer

A) True 
 B)False

Question 19

What is a limited liability company (LLC),and why do some consider it the best form of business ownership?

Accepted Answer

A limited liability company (LLC)is a fo

Question 20

In a partnership,all partners are equally liable.

Accepted Answer

A) True 
 B)False

What are the advantages of sole proprietorships over other forms of business organization?

All of the following are advantages of a sole proprietorship except

Selling interest in a partnership may be difficult because

A corporation doing business outside the state in which it is chartered is known as a(n)

A limited partnership always has at least one general partner,who assumes unlimited liability.

Which of the following is an advantage of a partnership?

All states require partnerships to have articles of partnership.

In a partnership,if the goals of one partner change,the result may be friction and even legal disputes.

Which of the following forms of business organization restricts the number and type of shareholder?

When a group of investors borrows money to buy a company or division,using the company's assets to guarantee the loan,it is called a(n)

Which characteristic of a sole proprietorship can be considered both an advantage and a disadvantage?

Sole proprietorships have the least degree of secrecy.

Why is it more difficult to value a partnership share than a share of stock in a corporation,for example?

What is a vertical merger and why would a firm attempt one? What are the benefits?

Which of the following is a disadvantage of a partnership?

Big City Financial is attempting to avoid a hostile takeover by a corporate raider by allowing stockholders to buy more shares of stock at prices lower than current market value.Which of the following methods is being used to avoid the takeover?

Thomas thinks that organizing as a partnership would be best because

Lack of control is a disadvantage of sole proprietorships.

What is a limited liability company (LLC),and why do some consider it the best form of business ownership?

In a partnership,all partners are equally liable.

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

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Exam 4: Options for Organizing Business

What are the advantages of sole proprietorships over other forms of business organization?

All of the following are advantages of a sole proprietorship except

Selling interest in a partnership may be difficult because

A corporation doing business outside the state in which it is chartered is known as a(n)

A limited partnership always has at least one general partner,who assumes unlimited liability.

Which of the following is an advantage of a partnership?

All states require partnerships to have articles of partnership.

In a partnership,if the goals of one partner change,the result may be friction and even legal disputes.

Which of the following forms of business organization restricts the number and type of shareholder?

When a group of investors borrows money to buy a company or division,using the company's assets to guarantee the loan,it is called a(n)

Which characteristic of a sole proprietorship can be considered both an advantage and a disadvantage?

Sole proprietorships have the least degree of secrecy.

Why is it more difficult to value a partnership share than a share of stock in a corporation,for example?

What is a vertical merger and why would a firm attempt one? What are the benefits?

Which of the following is a disadvantage of a partnership?

Big City Financial is attempting to avoid a hostile takeover by a corporate raider by allowing stockholders to buy more shares of stock at prices lower than current market value.Which of the following methods is being used to avoid the takeover?

Thomas thinks that organizing as a partnership would be best because

Lack of control is a disadvantage of sole proprietorships.

What is a limited liability company (LLC),and why do some consider it the best form of business ownership?

In a partnership,all partners are equally liable.

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