Exam 5: Forms of Business Ownership and Organization

The stocks of Silver Novelties,a toy store,are completely owned by the Schmidts.When the family elected to move from a sole proprietorship to a corporation,the greatest concern was _____.

Franchisors typically experience a greater return on investment than if the firm were run entirely as a company-owned chain.

Complete the following using the terms listed. -The form of business ownership that establishes the firm as a separate legal entity is the _____.

Compare and contrast the three forms of business ownership.

Government agencies offer benefits designed to help small businesses compete with larger firms.

If JNK steel buys Ramirez Iron Ore to assure itself of a constant flow of ore,it will be an example of a _____.

Describe the steps required when incorporating a business.Regarding incorporation,what might make a state "business-friendly"?

Larger firms prove more successful than smaller firms in offering innovative products to consumers.

_____ use their own capital supplemented with government loans to invest in small businesses.

Joint ventures rarely occur between not-for-profit organizations and for-profit companies.

A fast food chain offers a contractual business arrangement in various countries around the world.This fast food chain will be an example of a(n)international _____.

Complete the following using the terms listed. -Having a(n)_____ improves the chances of success for a new business by providing an orderly statement of a company's goals.

An acquisition occurs when _____.

_____ must verify in writing the accuracy of their corporation's financial statements.

Alternatives to private ownership include _____.

Small-business owners want to determine whether their companies meet the standards for small-business designation because:

First-time business owners often overestimate the funds their firms will generate from initial sales to allow for operations to continue.

The two principal parties in a franchising agreement are the _____.

A successful franchisor can usually negotiate better pricing for ingredients,supplies,even real estate,because of its financial strength and large volume purchases.

Owners of corporations may owe personal income taxes on dividends,which are paid from after-tax corporate profits.This is an example of double taxation.