Exam 4: Choosing a Form of Business Ownership

An S-corporation can have no more than twenty stockholders.

​What is the name given to the governing body of a corporation?

Shares of Burger House stock cannot be purchased on any stock exchange or by just any individual. This means that Burger House is a(n)

Walters Company, LLC, is a wholesale distributor of industrial packaging. A primary advantage that Walters enjoys as an LLC that corporations do not have is

When incorporating, a business

A common tactic of corporate raiders is to start a proxy fight.

Tiffany is about to finish her degree in business management and wants to find a job that will provide her with opportunities to advance within an organization. What type of business organization should Tiffany work for?

​In a 1960s movie, an heiress sends out thousands of letters to shareholders in an attempt to have them vote for her and for the company to remain independent or to give her the right to vote for them. The opponent tried to get the shareholders to vote for his side and asked shareholders to give him the right to vote for them. What kind of corporate takeover technique was this movie about?

Refer to B&G, Inc. What type of organization was Kevin considering switching to?

The retail card and gift shop chain that Heidi started has since been incorporated. Which of the following best describes the limited liability that Heidi has as the primary stockholder in this corporation?

Common stockholders have the right to elect a corporation's board of directors and vote on corporate matters.

When starting a corporation, people submit articles of incorporation to

Not-for-profit organizations must meet specific guidelines in order to obtain tax-exempt status. These guidelines are structured by the

​Maurice and Stanley's train store has grown to the point that they need more capital to expand the current location and to open stores in other cities. They do not want the liability of taking out a loan and are no longer concerned about government oversight but would still like to maintain limited liability. They would most likely form a

Amy owns 100 shares of General Electric preferred stock. She wants to attend the annual stockholder meeting to cast her vote on company issues. Based on your knowledge from school, you caution Amy that

A voluntary association of two or more people acting as co-owners of a business is known as a

Every partnership must have at least one limited partner.

Which of the following is not an advantage of a sole proprietorship?

Ted's partnership agreement with two other men was a bit unsound. One of the problems the men were encountering was uneven productivity among the partners. The agreement required each partner to contribute to every aspect of the business to receive an equal portion of the profits. This agreement did not reflect the idea that

Financial experts agree that takeovers enhance corporate profitability and productivity.