Exam 4: Choosing a Form of Business Ownership

Tracy is considering expanding his business and has several potential new investors in mind. He originally wanted to form an S-corporation to protect the liability of the investors, but he is now considering a limited-liability company instead because he knows there can be only ____ stockholders in an S-corporation.

Since someone must be responsible for a partnership's debts, a limited partnership must have at least one general partner.

Brian wants to start a business that provides canoe and kayak trips. He decides that it would be better to ask his brother Brad to become his partner because

If the owner of a sole proprietorship retires or dies, the owner's heirs may take over the business and either sell it or continue to operate it.

A hostile takeover is a situation in which

Angela is tired of her boss as well as corporate America in general. She decides she would like to start a business where no one tells her what to do, and she can always make the decisions. The best form of business for Angela is a(n)

Which of the following statements is true?

A ____ is a merger between firms operating at different but related levels in the production and marketing of a product.

What is the difference between a joint venture and a syndicate?

What are the primary responsibilities of the board of directors? What do corporate officers manage?

Prudential and several other large insurance companies have joined together to underwrite an extremely large insurance policy. This sort of association is referred to as a(n)

​If Pizza Hut and Papa John's Pizza united to become the new company of Papa's Hut, what transaction created the new company?

​Everett wants to start a sports club to benefit inner-city children and teach them rock climbing, mountaineering, and other outdoor sports. He wants to take donations to support the club rather than sell stock. What business form would be best for this club?

Preferred stockholders receive dividends before dividends are paid to common stockholders.

Because there are two or more people in a general partnership, bankers, suppliers, and other creditors are not concerned about unlimited liability.

Habitat for Humanity and Girl Scouts are both examples of

Shane is looking for ways to get more capital for his appliance sales and service business. He is very protective of his company's information and fears that it will get into the wrong hands. Shane would probably not want to

How can the following quotation best be explained: "Stockholders control the activities of a corporation"?

Quarrels among business associates have become common. The associates quarrel over what products the firm should sell, division of authority, selection of personnel, whether to bring family members into the business, whether to expand, and who is contributing most to the firm's success. Such feuding, which damages business relationships, occurs most frequently in what form of business?

A merger between two firms that make and sell similar products in similar markets is known as a