Exam 5: Forms of Business Ownership

____________________ occur when mergers or acquisitions are financed by large amounts of borrowed money,secured by the acquired company's assets.

A corporation has which of the following characteristics?

The two types of cooperatives are wholesales and retail.

Double taxation in a corporation is BEST described by which of the following?

David Dworkin is the founder of Swoozie's stores.The stores carry eclectic lines of wrapping paper,stationery,invitations,and gifts for affluent women.Dworkin supplied the product concept to other individuals who wanted to own and operate their own business without starting from scratch.Which of the following types of a business organization is Swoozie's?

What is the combination of two companies that join to form one company called?

A corporation's earnings are taxed as corporate earnings and as dividends to the shareholders.What is this known as?

Oscar Patel and Jon O'Keefe own and operate a janitorial cleaning service.Patel bought a new computer,which he plans for the company to use to track its customers,its suppliers,and for making business forecasts.Patel plans on using an installment plan to pay for the computer.O'Keefe was not asked if he thought the company needed a computer and was unhappy when he learned that he and Patel are both liable for the payments for the computer.Patel and O'Keefe have which of the following type of business?

Which of the following is an innovation in franchising?

Which of the following is a disadvantage associated with a corporation?

How is a corporation's board of directors formed?

Taxing a corporation's earnings and taxing the shareholder's dividends from the corporate earnings is called ____________________ taxation.

How is the board of directors for a corporation created?

In a ____________________ partnership,partners have unlimited liability for all of the firm's business obligations and control its operations.

If the sole proprietorship acquires a legal business name,the owner then has limited liability.

Distinguish between a merger and an acquisition.

What forms of business ownership have to deal with the disadvantage of unlimited liability?

When Sara Lee,a company known for its baked goods,purchased Dim S.A.,a French hosiery manufacturer,it was an example of a conglomerate merger.

Which form of business ownership has the most difficulty in raising capital?

Tiffany Worth is buying a Dairy Queen franchise.Which of the following is not normally expected of the franchise?