Exam 5: Forms of Business Ownership

Which of the following statements about the taxation of partnerships is MOST accurate?

Miniature Precision Corporation,a microprocessor manufacturer,recently acquired Cameron-Price,a plastics mould manufacturer.Miniature Precision financed the transaction with 90 percent borrowed money and used Cameron-Price's assets as collateral.What is this type of merger commonly known as?

Which of the following provides the legal and managerial guidelines for operating the firm?

Which of the following is created when two or more companies form a special entity to undertake a specific project,usually for a specific period of time?

A person who buys a franchise has the same level of control as an entrepreneur who opens his or her own sole proprietorship.

EMC,a data storage company,took over a company called Documentation,which makes software designed to help companies organize data such as e-mails,medical records,and spreadsheets.This is an example of which of the following for EMC?

What do a firm's shareholders have the right to do?

Ease of formation,flexibility,and diversity of management are advantages of which of the following forms of business ownership?

Which form of business ownership is an ideal way to test new business ideas?

Rama Singh and Allie Jordan are opening a business where they will create and sell packaged assortments of flavoured vinegars with recipe booklets.Since they are planning to operate as a partnership,which of the following represents the best course of action for them?

Tara Bartek owns and operates the Singing Pig Food Company.Bartek makes and markets 20 different gourmet mustards,salsas,marinades,and dip mixes using its crooning pig logo.As a sole proprietorship,the company would have experienced which of the following?

Which of the following are organizations formed by individuals or businesses with similar interests to achieve greater economies of scale and economic power through collective ownership?

Scott Abrams was driving to Calgary from Edmonton,when he got off Highway 2 to have some lunch.Abrams was surprised to find a fast-food outlet that contained both a Tim Horton's and a Wendy's franchise.What is this new trend in franchising called?

When Markum Corp.,a manufacturer of cardboard printing equipment,purchased Pretak Ltd.,a manufacturer of printers for printing on plastic,it was an example of an acquisition.

A corporation can BEST be described by which of the following statements?

In 1984,Suzanne Pogell wanted to learn to sail,but she could find no one to teach her.She finally did convince someone to teach her to sail and,after mastering sailing,she started an all-woman sailing school called Womanship as a sole proprietorship.Which of the following represents the meaning of unlimited liability to Suzanne?

When Addison Wilcox buys an H&R Block franchise,he becomes a franchisee.

Discuss the following statement: "Joint ventures have unlimited life."

Al Tomlin and Wilson Nkata recently closed their frame shop because they could not pay the outstanding business debts.Since Tomlin and Nkata are both liable for the debts,what sort of business do they have?

The merger of McKesson,a leading drug wholesaler,and HBOC,a producer of health-care inventory software,is an example of which of the following type of merger?