Exam 4: Choosing a Form of Business Ownership

Boeing is incorporated in Seattle, Washington. It has a large facility in Huntsville, Alabama, and is considered a(n) ____ because it conducts business within Alabama.

What is an owner of a corporation called? What is the difference between a closed corporation and an open corporation?

Which of the following is a disadvantage of the corporate form of organization?

The partner who can lose only what he or she has invested in a business is the

Unlimited liability holds a sole proprietor personally responsible for all the debts of the business.

If Avon and Merck joined together to produce a cream that slows down the aging process, this would be called a(n)

A limited-liability company is taxed like a corporation.

A partnership formed to operate for a specific time period or to accomplish a specific purpose is known as a

How do management tasks differ for a general partner and a limited partner?

Jack has been saving his excess funds for several years and has contemplated entering a partnership with a friend from college. Jack hesitates because he knows that it is ____ to invest money in a partnership and ____ to get the money back out.

To gain access to one another's markets, several U.S. and Japanese automobile manufacturers (for example, Chrysler and Mitsubishi) are engaging in temporary alliances to manufacture and market certain models of cars. These types of partnerships are known as

Define "growth from within" in regard to a corporation. Is it generally a suggested path for corporations?

A temporary association organized to perform a specific task requiring a large amount of capital is known as a(n)

Unless specified in the charter, a corporation has a

Economists, financial analysts, corporate managers, and stockholders all agree that mergers are good for both the company and the economy.

​Maurice and Stanley have sold stock to eight of their friends and have enough money to expand the business and to open another store. During a shareholders' meeting, Maurice, Stanley, and the eight other shareholders unanimously agreed that it would be better to pass through the company's profits and losses like a partnership. All of the shareholders are individuals and United States citizens. The shareholders could vote to change the corporation into a(n)

When a business incorporates, it receives articles of incorporation from the Internal Revenue Service.

All not-for-profit corporations rely solely on volunteers to perform services of the organization.

Which of the following states offers the lowest organizational costs for corporations?

Which of the following is an advantage of the corporate form of organization?