Question 1

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 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 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 4

A private corporation is one that

Accepted Answer

A)  is owned by only a few people and not traded in public markets. 
B)  does not pay taxes on its income. 
C)  does not hire employees. 
D)  can be purchased on the New York Stock Exchange. 
E)  does business outside the nation in which it is incorporated. 
A)  is owned by only a few people and not traded in public markets. 
B)  does not pay taxes on its income. 
C)  does not hire employees. 
D)  can be purchased on the New York Stock Exchange. 
E)  does business outside the nation in which it is incorporated.

Question 5

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 6

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 7

Joint ventures are popular in situations that call for

Accepted Answer

A)  reduced regulations. 
B)  cooperation among farmers or ranchers. 
C)  unlimited liability. 
D)  large investments. 
E)  small investments. 
A)  reduced regulations. 
B)  cooperation among farmers or ranchers. 
C)  unlimited liability. 
D)  large investments. 
E)  small investments.

Question 8

The organizational form that many consider to be a blend of the best characteristics of corporations,partnerships,and sole proprietorships is the

Accepted Answer

A)  joint venture. 
B)  cooperative. 
C)  C corporation. 
D)  S corporation. 
E)  limited liability company. 
A)  joint venture. 
B)  cooperative. 
C)  C corporation. 
D)  S corporation. 
E)  limited liability company.

Question 9

Shark repellant is a method of thwarting a corporate takeover in which management requires a large majority of stockholders to approve the takeover.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is an advantage of a sole proprietorship?

Accepted Answer

A)  Limited sources of funds 
B)  Profits are not shared 
C)  Limited liability 
D)  Ease of hiring qualified employees 
E)  Owner's role as a generalist 
A)  Limited sources of funds 
B)  Profits are not shared 
C)  Limited liability 
D)  Ease of hiring qualified employees 
E)  Owner's role as a generalist

Question 11

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 12

Lack of control is a disadvantage of sole proprietorships.

Accepted Answer

A) True 
 B)False

Question 13

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 14

Sole proprietorships have the least degree of secrecy.

Accepted Answer

A) True 
 B)False

Question 15

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 16

Articles of partnership are required by many states for businesses that have two or more co-owners.The issues covered usually include all of the following except

Accepted Answer

A)  a statement of what each partner contributes. 
B)  how the profits and losses will be divided. 
C)  what duties the partners will have. 
D)  provisions for leaving the partnership. 
E)  classes of stock to be issued. 
A)  a statement of what each partner contributes. 
B)  how the profits and losses will be divided. 
C)  what duties the partners will have. 
D)  provisions for leaving the partnership. 
E)  classes of stock to be issued.

Question 17

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)  partnerships do not have to report their income on a tax return. 
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)  partnerships do not have to report their income on a tax return.

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

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

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)  An attempt to fend off a hostile takeover by requiring the deal be approved by a large majority of shareholders 
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)  An attempt to fend off a hostile takeover by requiring the deal be approved by a large majority of shareholders 
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

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

Companies of all sizes grow and improve profitability by

A sole proprietorship is a popular form of business because

A private corporation is one that

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

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

Joint ventures are popular in situations that call for

The organizational form that many consider to be a blend of the best characteristics of corporations,partnerships,and sole proprietorships is the

Shark repellant is a method of thwarting a corporate takeover in which management requires a large majority of stockholders to approve the takeover.

Which of the following is an advantage of a sole proprietorship?

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

Lack of control is a disadvantage of sole proprietorships.

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

Sole proprietorships have the least degree of secrecy.

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

Articles of partnership are required by many states for businesses that have two or more co-owners.The issues covered usually include all of the following except

According to the Internal Revenue Service,

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

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

When discussing corporations,what is a white knight?

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

Accounting and Financial Statements

Money and the Financial System

Financial Management and Securities Markets

Filters

Exam 4: Options for Organizing Business

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

Companies of all sizes grow and improve profitability by

A sole proprietorship is a popular form of business because

A private corporation is one that

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

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

Joint ventures are popular in situations that call for

The organizational form that many consider to be a blend of the best characteristics of corporations,partnerships,and sole proprietorships is the

Shark repellant is a method of thwarting a corporate takeover in which management requires a large majority of stockholders to approve the takeover.

Which of the following is an advantage of a sole proprietorship?

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

Lack of control is a disadvantage of sole proprietorships.

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

Sole proprietorships have the least degree of secrecy.

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

Articles of partnership are required by many states for businesses that have two or more co-owners.The issues covered usually include all of the following except

According to the Internal Revenue Service,

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

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

When discussing corporations,what is a white knight?

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

Accounting and Financial Statements

Money and the Financial System

Financial Management and Securities Markets

Filters