Exam 4: Choosing a Form of Business Ownership

A limited-liability company extends the concept of personal-asset protection to small business owners.

About 85 percent of all business firms in the United States are sole proprietorships.

The most effective form of business organization for raising capital is the

All of the following are disadvantages of corporations except

The form of business organization most heavily regulated by the government is the

In a limited partnership, a limited partner's name must be included in the partnership's name.

The major reason why businesses change from sole proprietorships to other forms of ownership is to

Compared to a corporation, a partnership is more difficult and expensive to establish.

Describe the array of advantages of a corporation.

Daniel, Thomas, and Lucas are partners in a law firm under a typical partnership agreement in which each owns an equal share of the business. Thomas dies suddenly of a heart attack. What will most likely become of the partnership?

What does double taxation mean?

A merger between firms in completely unrelated industries is known as a

All of the following are disadvantages that Sean should consider before entering a partnership agreement with his cousin except

Which of the following is a requirement for an S-corporation?

Allied Services is a transportation company that operates in most of the United States. If Allied Services decided to incorporate, in which state would it incorporate?

Kayla purchases shares of ownership in General Electric. These shares are referred to as

What is the primary disadvantage of both a sole proprietorship and a partnership that a corporation overcomes?

As with a sole proprietorship, one disadvantage of a partnership is a lack of continuity.

In your own words, explain the differences among a horizontal merger, a vertical merger, and a conglomerate merger.

The purchase of one corporation by another is called a merger.