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

Why is taxation considered both an advantage and a disadvantage of the sole proprietorship organizational form?

Accepted Answer

Taxation is an advantage because owners

Question 3

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)  In law,accounting,and architecture firms 
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)  In law,accounting,and architecture firms 
D)  When all partners wish to share liability equally 
E)  When the project is risky and the chance of loss is great

Question 4

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 5

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

Accepted Answer

A) True 
 B)False

Question 6

Which of the following organizational forms is most expensive to set up?

Accepted Answer

A)  Sole proprietorship 
B)  Limited partnership 
C)  General partnership 
D)  Cooperative 
E)  Corporation 
A)  Sole proprietorship 
B)  Limited partnership 
C)  General partnership 
D)  Cooperative 
E)  Corporation

Question 7

All of the following are advantages of a corporation except

Accepted Answer

A)  limited liability. 
B)  lower frequency of taxation. 
C)  perpetual life of organization. 
D)  ease of transfer of ownership. 
E)  external funding sources. 
A)  limited liability. 
B)  lower frequency of taxation. 
C)  perpetual life of organization. 
D)  ease of transfer of ownership. 
E)  external funding sources.

Question 8

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

Accepted Answer

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

Question 9

The government usually will scrutinize high-profile mergers and acquisitions to ensure that they are not creating monopolies.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

It is easier to raise funds in a partnership than in a sole proprietorship because

Accepted Answer

A)  more people means greater earning power and credit. 
B)  partners have better organizational control. 
C)  banks know them better. 
D)  partners have more combined experience. 
E)  they can issue stock. 
A)  more people means greater earning power and credit. 
B)  partners have better organizational control. 
C)  banks know them better. 
D)  partners have more combined experience. 
E)  they can issue stock.

Question 12

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

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

The type of corporation represented by organizations such as the National Aeronautics and Space Administration (NASA)and the U.S.Postal Service is called

Accepted Answer

A)  private. 
B)  quasi-private. 
C)  public. 
D)  quasi-public. 
E)  private-public. 
A)  private. 
B)  quasi-private. 
C)  public. 
D)  quasi-public. 
E)  private-public.

Question 15

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

Accepted Answer

Some of the advantages of partnerships t

Question 16

Which of the following is not a disadvantage of forming a partnership?

Accepted Answer

A)  All partners are responsible for all other partners 
B)  Unlimited liability 
C)  Fewer regulatory controls than in a corporation 
D)  The partnership ends when a partner withdraws or dies 
E)  Sources of funds are limited 
A)  All partners are responsible for all other partners 
B)  Unlimited liability 
C)  Fewer regulatory controls than in a corporation 
D)  The partnership ends when a partner withdraws or dies 
E)  Sources of funds are limited

Question 17

Taking a company public means announcing its creation to the public.

Accepted Answer

A) True 
 B)False

Question 18

While corporations account for the majority of businesses in the United States,they represent a small percentage of profits.

Accepted Answer

A) True 
 B)False

Question 19

About three-quarters of all businesses in the United States are sole proprietorships,and they account for 10 percent of total business income.We may conclude that

Accepted Answer

A)  the average corporation is small,but earns little income. 
B)  the average corporation hires many people,but makes little income. 
C)  the average sole proprietorship is large,but earns little income. 
D)  there are many sole proprietorships,but their average income is small. 
E)  there are few sole proprietorships,and their average income is small. 
A)  the average corporation is small,but earns little income. 
B)  the average corporation hires many people,but makes little income. 
C)  the average sole proprietorship is large,but earns little income. 
D)  there are many sole proprietorships,but their average income is small. 
E)  there are few sole proprietorships,and their average income is small.

Question 20

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

An important advantage of a corporation is its

Why is taxation considered both an advantage and a disadvantage of the sole proprietorship organizational form?

When are limited partnerships generally used?

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)

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

Which of the following organizational forms is most expensive to set up?

All of the following are advantages of a corporation except

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

The government usually will scrutinize high-profile mergers and acquisitions to ensure that they are not creating monopolies.

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

It is easier to raise funds in a partnership than in a sole proprietorship because

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

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

The type of corporation represented by organizations such as the National Aeronautics and Space Administration (NASA)and the U.S.Postal Service is called

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

Which of the following is not a disadvantage of forming a partnership?

Taking a company public means announcing its creation to the public.

While corporations account for the majority of businesses in the United States,they represent a small percentage of profits.

About three-quarters of all businesses in the United States are sole proprietorships,and they account for 10 percent of total business income.We may conclude that

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

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

An important advantage of a corporation is its

Why is taxation considered both an advantage and a disadvantage of the sole proprietorship organizational form?

When are limited partnerships generally used?

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)

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

Which of the following organizational forms is most expensive to set up?

All of the following are advantages of a corporation except

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

The government usually will scrutinize high-profile mergers and acquisitions to ensure that they are not creating monopolies.

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

It is easier to raise funds in a partnership than in a sole proprietorship because

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

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

The type of corporation represented by organizations such as the National Aeronautics and Space Administration (NASA)and the U.S.Postal Service is called

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

Which of the following is not a disadvantage of forming a partnership?

Taking a company public means announcing its creation to the public.

While corporations account for the majority of businesses in the United States,they represent a small percentage of profits.

About three-quarters of all businesses in the United States are sole proprietorships,and they account for 10 percent of total business income.We may conclude that

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

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