Question 1

An important advantage of a corporation is its

Accepted Answer

A) single taxation. 
B) limited liability. 
C) ease of formation. 
D) lack of bureaucracy. 
E) double taxation. 
A) single taxation. 
B) limited liability. 
C) ease of formation. 
D) lack of bureaucracy. 
E) double taxation.

Question 2

Companies of all sizes grow and improve profitability by

Accepted Answer

A) Choosing the right kind of organizational structure 
B) Sticking to domestic markets 
C) Not utilizing new technologies as they become available 
D) Expanding their operations 
E) Creating franchises 
A) Choosing the right kind of organizational structure 
B) Sticking to domestic markets 
C) Not utilizing new technologies as they become available 
D) Expanding their operations 
E) Creating franchises

Question 3

A private corporation is one that

Accepted Answer

A) is owned by only a few people and not traded on the open market. 
B) does not pay taxes on its income. 
C) does not hire employees. 
D) can be purchased on the New York Stock Exchange. 
E) all of the above. 
A) is owned by only a few people and not traded on the open market. 
B) does not pay taxes on its income. 
C) does not hire employees. 
D) can be purchased on the New York Stock Exchange. 
E) all of the above.

Question 4

When a firm is facing a hostile takeover attempt,it may issue a poison pill,which is

Accepted Answer

A) when it fires its board of directors for incompetence. 
B) when the firm allows stockholders to buy up shares of stock at lower than market value. 
C) when the executive suite quits en masse before a takeover. 
D) a term for plummeting stock values. 
E) merely a harshly worded letter to the company attempting to take it over expressing dismay at the maneuver. 
A) when it fires its board of directors for incompetence. 
B) when the firm allows stockholders to buy up shares of stock at lower than market value. 
C) when the executive suite quits en masse before a takeover. 
D) a term for plummeting stock values. 
E) merely a harshly worded letter to the company attempting to take it over expressing dismay at the maneuver.

Question 5

A conglomerate merger results when two firms in unrelated industries merge.

Accepted Answer

A) True 
 B)False

Question 6

When two companies combine to form a new company,it is called a(n)

Accepted Answer

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

Question 7

Anand has been asked to join a new partnership that is developing wind energy technologies.Because the business is high risk,he does not want to be liable for the firm's debts if the project should fail.He could still participate as a

Accepted Answer

A) general partner. 
B) limited partner. 
C) silent partner. 
D) working partner. 
E) contributor. 
A) general partner. 
B) limited partner. 
C) silent partner. 
D) working partner. 
E) contributor.

Question 8

Bryan thinks their plant resale company should be a corporation because

Accepted Answer

A) it is cheaper. 
B) all good businesses are corporations. 
C) they would have limited liability and seem larger. 
D) the other forms of corporation are not valid in their case. 
E) Bryan does not think the company should be a corporation. 
A) it is cheaper. 
B) all good businesses are corporations. 
C) they would have limited liability and seem larger. 
D) the other forms of corporation are not valid in their case. 
E) Bryan does not think the company should be a corporation.

Question 9

Which of the following forms of business ownership is directly limited by the life of its owner?

Accepted Answer

A) Sole proprietorships 
B) Limited partnerships 
C) Corporations 
D) Holding companies 
E) Subsidiaries 
A) Sole proprietorships 
B) Limited partnerships 
C) Corporations 
D) Holding companies 
E) Subsidiaries

Question 10

In most states,corporations must have "corporation," "incorporated," or "limited" in their names to show that their owners have limited liability.

Accepted Answer

A) True 
 B)False

Question 11

How do preferred stockholders differ from the common stockholders of a corporation?

Accepted Answer

While common stockholders usually have v

Question 12

A written authorization assigning a stockholder's voting privilege to another is a

Accepted Answer

A) stock sale. 
B) stock certificate. 
C) stock split. 
D) dividend restructuring. 
E) proxy. 
A) stock sale. 
B) stock certificate. 
C) stock split. 
D) dividend restructuring. 
E) proxy.

Question 13

S Corporations are more flexible than traditional "C corporations."

Accepted Answer

A) True 
 B)False

Question 14

What are the advantages and disadvantages of their forming a partnership?

Accepted Answer

Some of the advantages of partnerships t

Question 15

Corporations cannot be sued.

Accepted Answer

A) True 
 B)False

Question 16

A limited partnership involves a complete sharing in the management of a business.

Accepted Answer

A) True 
 B)False

Question 17

Preferred stockholders receive dividends before common stockholders and have principle voting rights as well.

Accepted Answer

A) True 
 B)False

Question 18

The group of individuals elected by the stockholders to oversee the general operation of a corporation are known as the

Accepted Answer

A) middle managers. 
B) top managers. 
C) board of directors. 
D) shareholders. 
E) owners. 
A) middle managers. 
B) top managers. 
C) board of directors. 
D) shareholders. 
E) owners.

Question 19

The type of ownership that has the ability to raise capital most easily is a

Accepted Answer

A) public corporation. 
B) private corporation. 
C) sole proprietorship. 
D) general partnership. 
E) limited partnership. 
A) public corporation. 
B) private corporation. 
C) sole proprietorship. 
D) general partnership. 
E) limited partnership.

Question 20

Common stockholders do not have the right to

Accepted Answer

A) vote for the board of directors. 
B) share in profits. 
C) attend the stockholders' meetings. 
D) exercise preemptive rights. 
E) receive dividends before preferred stockholders. 
A) vote for the board of directors. 
B) share in profits. 
C) attend the stockholders' meetings. 
D) exercise preemptive rights. 
E) receive dividends before preferred stockholders.

An important advantage of a corporation is its

Companies of all sizes grow and improve profitability by

A private corporation is one that

When a firm is facing a hostile takeover attempt,it may issue a poison pill,which is

A conglomerate merger results when two firms in unrelated industries merge.

When two companies combine to form a new company,it is called a(n)

Anand has been asked to join a new partnership that is developing wind energy technologies.Because the business is high risk,he does not want to be liable for the firm's debts if the project should fail.He could still participate as a

Bryan thinks their plant resale company should be a corporation because

Which of the following forms of business ownership is directly limited by the life of its owner?

In most states,corporations must have "corporation," "incorporated," or "limited" in their names to show that their owners have limited liability.

How do preferred stockholders differ from the common stockholders of a corporation?

A written authorization assigning a stockholder's voting privilege to another is a

S Corporations are more flexible than traditional "C corporations."

What are the advantages and disadvantages of their forming a partnership?

Corporations cannot be sued.

A limited partnership involves a complete sharing in the management of a business.

Preferred stockholders receive dividends before common stockholders and have principle voting rights as well.

The group of individuals elected by the stockholders to oversee the general operation of a corporation are known as the

The type of ownership that has the ability to raise capital most easily is a

Common stockholders do not have the right to

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

An important advantage of a corporation is its

Companies of all sizes grow and improve profitability by

A private corporation is one that

When a firm is facing a hostile takeover attempt,it may issue a poison pill,which is

A conglomerate merger results when two firms in unrelated industries merge.

When two companies combine to form a new company,it is called a(n)

Anand has been asked to join a new partnership that is developing wind energy technologies.Because the business is high risk,he does not want to be liable for the firm's debts if the project should fail.He could still participate as a

Bryan thinks their plant resale company should be a corporation because

Which of the following forms of business ownership is directly limited by the life of its owner?

In most states,corporations must have "corporation," "incorporated," or "limited" in their names to show that their owners have limited liability.

How do preferred stockholders differ from the common stockholders of a corporation?

A written authorization assigning a stockholder's voting privilege to another is a

S Corporations are more flexible than traditional "C corporations."

What are the advantages and disadvantages of their forming a partnership?

Corporations cannot be sued.

A limited partnership involves a complete sharing in the management of a business.

Preferred stockholders receive dividends before common stockholders and have principle voting rights as well.

The group of individuals elected by the stockholders to oversee the general operation of a corporation are known as the

The type of ownership that has the ability to raise capital most easily is a

Common stockholders do not have the right to

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