Exam 4: Choosing a Form of Business Ownership

Walmart is incorporated in Arkansas, the state of its origins and headquarters. Within Arkansas, Walmart is classified as a(n) ____ corporation.

The order of difficulty and expense, from most to least, when forming a business organization is as follows:

Corporate officers are

Wade serves on Foot Locker's board of directors. How did Wade get this position?

Common stock carries all the following rights except the right to

When Alyssa decides that she no longer wants her Radio Shack stock, she will discover that a related benefit of a corporation is

The form of business organization that accounts for 82 percent of all sales revenues in the United States is the

A corporation organized to provide a social, educational, religious, or other nonbusiness service is known as a(n)

The courts have held that an oral partnership agreement is not legally binding and, therefore, cannot be enforced.

Wade Comer and Tom Busby decide to start a partnership and offer accounting services. Which of the following is the best way to start this partnership?

Lisa and John own a partnership that provides rental equipment for parties and special occasions. Which of the following is true about the way Lisa and John would handle company profits?

Unlimited liability means

To raise capital, Candace Tyson and Martha Black plan to sell stock to between 108 and 200 investors. They also want to avoid double taxation. Which type of business ownership would you recommend?

The person who assumes full co-ownership of a partnership, including unlimited liability, is a

When Compaq and Hewlett-Packard decided to become one company, this was an example of a(n)

Glenn owns and operates a large hardware store in Missouri that employs about fifty people. He delegates some of the decision making to two managers, but he remains the only owner. Glenn's business is organized as a

Mars, Inc., maker of M&Ms and other candy, is 100 percent owned by the Mars family and is therefore referred to as a(n)

Twenty-five young investors decided that they want to start a dating service; however, they do not want to be held personally liable for losses of the company. They want to avoid double taxation. Which type of business organization would best fit the needs of these individuals?

The ____ is a legal document that lists and explains the terms of the partnership.

Experts predict that mergers in the first part of the twenty-first century will be the result of cash-rich companies looking to acquire businesses that will enhance their position in the marketplace.