Question 1

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

Accepted Answer

A partnership is defined by the Uniform

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

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

Accepted Answer

A) True 
 B)False

Question 4

What are sole proprietorships? Provide an example.

Accepted Answer

Sole proprietorships are owned and opera

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

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 7

Most sole proprietorships focus on manufacturing.

Accepted Answer

A) True 
 B)False

Question 8

The right of common stockholders to have the opportunity to purchase new shares of stock is called a

Accepted Answer

A)  first offer right. 
B)  preemptive right. 
C)  stock split right. 
D)  profit sharing right. 
E)  secondary right. 
A)  first offer right. 
B)  preemptive right. 
C)  stock split right. 
D)  profit sharing right. 
E)  secondary right.

Question 9

The decision-making process in a partnership tends to be faster when the partnership is

Accepted Answer

A)  multifaceted. 
B)  small. 
C)  foreign. 
D)  domestic. 
E)  large. 
A)  multifaceted. 
B)  small. 
C)  foreign. 
D)  domestic. 
E)  large.

Question 10

Selling an interest in a partnership may be difficult because

Accepted Answer

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

Question 11

A sole proprietorship has limited sources of funds,which may affect the growth of the business.

Accepted Answer

A) True 
 B)False

Question 12

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

Question 13

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 14

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 15

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

Question 16

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

Accepted Answer

The advantages of sole proprietorships a

Question 17

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 18

Corporations cannot be sued.

Accepted Answer

A) True 
 B)False

Question 19

Ruji has realized that she does not like working for others.She wants to open a business in which she will have maximum control and the least interference from government regulation.Which business form might be best for her to use?

Accepted Answer

A)  Joint venture 
B)  Cooperative 
C)  Corporation 
D)  Partnership 
E)  Sole proprietorship 
A)  Joint venture 
B)  Cooperative 
C)  Corporation 
D)  Partnership 
E)  Sole proprietorship

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.

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

All of the following are advantages of a sole proprietorship except

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

What are sole proprietorships? Provide an example.

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

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

Most sole proprietorships focus on manufacturing.

The right of common stockholders to have the opportunity to purchase new shares of stock is called a

The decision-making process in a partnership tends to be faster when the partnership is

Selling an interest in a partnership may be difficult because

A sole proprietorship has limited sources of funds,which may affect the growth of the business.

Which of the following is an advantage 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?

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

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

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

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

Corporations cannot be sued.

Ruji has realized that she does not like working for others.She wants to open a business in which she will have maximum control and the least interference from government regulation.Which business form might be best for her to use?

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

Accounting and Financial Statements

Money and the Financial System

Financial Management and Securities Markets

Filters

Exam 4: Options for Organizing Business

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

All of the following are advantages of a sole proprietorship except

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

What are sole proprietorships? Provide an example.

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

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

Most sole proprietorships focus on manufacturing.

The right of common stockholders to have the opportunity to purchase new shares of stock is called a

The decision-making process in a partnership tends to be faster when the partnership is

Selling an interest in a partnership may be difficult because

A sole proprietorship has limited sources of funds,which may affect the growth of the business.

Which of the following is an advantage 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?

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

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

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

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

Corporations cannot be sued.

Ruji has realized that she does not like working for others.She wants to open a business in which she will have maximum control and the least interference from government regulation.Which business form might be best for her to use?

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

Accounting and Financial Statements

Money and the Financial System

Financial Management and Securities Markets

Filters