Question 1

Which of the following is an example of a disadvantage associated with a partnership?

Accepted Answer

A)  unlimited liability
B)  possibility of more available credit
C)  diversity of management
D)  flexibility
E)  ease of formation

Question 2

Of all forms of business ownership, corporations account for the largest share of both:

Accepted Answer

A)  number of firms and sales
B)  sales and profits
C)  income and employees
D)  number of firms and employees
E)  bankruptcies and employees

Question 3

Partnership agreements generally specify all of following EXCEPT:

Accepted Answer

A)  contributions of each partner
B)  management responsibilities
C)  provisions for senior partnership interests
D)  methods of taxation of each partner
E)  steps in dissolving the entity

Question 4

_____ are corporate takeovers financed by large amounts of borrowed money.

Accepted Answer

A)  Liquidity corporations
B)  Debt acquisitions
C)  Financed mergers
D)  Leveraged buyouts
E)  Amortized mergers

Question 5

North American Van Lines and Allied Van Lines combined in a _____ merger that will create the world's largest moving company.Prior to the merger, North American was the leading company in moving high-end merchandise such as computer and hospital equipment, while Allied specialized in households.

Accepted Answer

A)  conglomerate
B)  combination
C)  horizontal
D)  vertical
E)  functional

Question 6

The franchise agreement:

Accepted Answer

A)  must be approved by the Securities and Exchange Commission (SE
C)  
B)  guarantees that the franchisee will make a profit
C)  is the contract that details the terms of the franchise
D)  guarantees that the franchisor will make a profit
E)  removes any liability from the franchisor if the franchisee does not make a profit

Question 7

With its ease of registration and pro-corporate policies, _____ is called the "state of incorporation." About half of the Fortune 500 companies are incorporated there.

Accepted Answer

A)  New York
B)  Ohio
C)  Delaware
D)  Georgia
E)  California

Question 8

Aaron Medford has invested $600 in the corporate stock of a manufacturer of offshore oil drilling equipment.If the company goes bankrupt, the most Medford could lose would be:

Accepted Answer

A)  half of his investment
B)  the par value of his stock
C)  $600
D)  $600 plus foreclosure costs
E)  nothing--the company must reimburse him his investment

Question 9

A person who buys a franchise has the same level of control as an entrepreneur who opens his or her own sole proprietorship.

Accepted Answer

A) True 
 B)False

Question 10

To avoid double taxation, a new entrepreneur may elect to organize as a(n) :

Accepted Answer

A)  cooperative
B)  multiple proprietorship
C)  S corporation
D)  conventional corporation
E)  C corporation

Question 11

Who owns a corporation?

Accepted Answer

A)  its employees
B)  its board of directors
C)  its president
D)  its board of directors and major stockholders
E)  everyone who owns a share of stock in the corporation

Question 12

Bob Nichol and Martha Bohner own and operate a small company that bakes and sells Thunder Muffins, gigantic muffins full of blueberries, blackberries, or raspberries.They sell the muffins at a local farm that is open to the public on weekends.Since they operate the business as a partnership, they should:

Accepted Answer

A)  borrow as much as possible
B)  hire an outside consultant
C)  hire a manager to operate the business
D)  seek government assistance
E)  agree to share the business's profits and losses

Question 13

Double taxation is a distinct advantage that corporations have over other forms of ownership.

Accepted Answer

A) True 
 B)False

Question 14

List the three major types of mergers.

Accepted Answer

vertical, ...

Question 15

Croutakie seemed like a great idea.Chef Leo Nyami and Sara Rice decided to take advantage of the popularity of shitake mushrooms and create some shitake mushrooms products that could be sold to restaurant patrons and other gourmets through their new company.Nyami and Rice have recently abandoned their business because they could not pay its outstanding business debts.Since Nyami and Rice are both liable for the debts, their business was a(n) :

Accepted Answer

A)  general partnership
B)  private corporation
C)  limited partnership
D)  open corporation
E)  quasi corporation

Question 16

A corporation:

Accepted Answer

A)  is a taxable entity
B)  is subject to the laws of the state in which it was formed
C)  can own property
D)  can sue and be sued
E)  is accurately described by all of the above

Question 17

In the United States, which form of business organization generates the most sales and profits?

Accepted Answer

The answer of In the United States, which form of...

Question 18

The most common form of business organization is the:

Accepted Answer

A)  general partnership
B)  corporation
C)  sole proprietorship
D)  cooperative
E)  limited partnership

Question 19

_____ occur when mergers or acquisitions are financed by large amounts of borrowed money, secured by the acquired company's assets.

Accepted Answer

Leveraged ...

Question 20

If the sole proprietorship acquires a legal business name, the owner then has limited liability.

Accepted Answer

A) True 
 B)False

Exam 4: Forms of Business Ownership

A person who buys a franchise has the same level of control as an entrepreneur who opens his or her own sole proprietorship.

Correct Answer
verified

North American Van Lines and Allied Van Lines combined in a _____ merger that will create the world's largest moving company.Prior to the merger, North American was the leading company in moving high-end merchandise such as computer and hospital equipment, while Allied specialized in households.

Correct Answer
verified

To avoid double taxation, a new entrepreneur may elect to organize as a(n) :

Correct Answer
verified

Which of the following is an example of a disadvantage associated with a partnership?

Correct Answer
verified

Partnership agreements generally specify all of following EXCEPT:

Correct Answer
verified

The most common form of business organization is the:

Correct Answer
verified

List the three major types of mergers.

Correct Answer
verified
vertical, ...
View Answer

Aaron Medford has invested $600 in the corporate stock of a manufacturer of offshore oil drilling equipment.If the company goes bankrupt, the most Medford could lose would be:

Correct Answer
verified

Who owns a corporation?

Correct Answer
verified

Of all forms of business ownership, corporations account for the largest share of both:

Correct Answer
verified

Correct Answer
verified

The franchise agreement:

Correct Answer
verified

_____ occur when mergers or acquisitions are financed by large amounts of borrowed money, secured by the acquired company's assets.

Correct Answer
verified
Leveraged ...
View Answer

In the United States, which form of business organization generates the most sales and profits?

Correct Answer
verified

If the sole proprietorship acquires a legal business name, the owner then has limited liability.

Correct Answer
verified

Correct Answer
verified

A corporation:

Correct Answer
verified

Double taxation is a distinct advantage that corporations have over other forms of ownership.

Correct Answer
verified

_____ are corporate takeovers financed by large amounts of borrowed money.

Correct Answer
verified

With its ease of registration and pro-corporate policies, _____ is called the "state of incorporation." About half of the Fortune 500 companies are incorporated there.

Correct Answer
verified

Exam 4: Forms of Business Ownership

A person who buys a franchise has the same level of control as an entrepreneur who opens his or her own sole proprietorship.

Correct AnswerverifiedShow Answer

North American Van Lines and Allied Van Lines combined in a _____ merger that will create the world's largest moving company.Prior to the merger, North American was the leading company in moving high-end merchandise such as computer and hospital equipment, while Allied specialized in households.

Correct AnswerverifiedShow Answer

To avoid double taxation, a new entrepreneur may elect to organize as a(n) :

Correct AnswerverifiedShow Answer

Which of the following is an example of a disadvantage associated with a partnership?

Correct AnswerverifiedShow Answer

Partnership agreements generally specify all of following EXCEPT:

Correct AnswerverifiedShow Answer

The most common form of business organization is the:

Correct AnswerverifiedShow Answer

List the three major types of mergers.

Correct Answerverifiedvertical, ...View AnswerShow Answer

Aaron Medford has invested $600 in the corporate stock of a manufacturer of offshore oil drilling equipment.If the company goes bankrupt, the most Medford could lose would be:

Correct AnswerverifiedShow Answer

Who owns a corporation?

Correct AnswerverifiedShow Answer

Of all forms of business ownership, corporations account for the largest share of both:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The franchise agreement:

Correct AnswerverifiedShow Answer

_____ occur when mergers or acquisitions are financed by large amounts of borrowed money, secured by the acquired company's assets.

Correct AnswerverifiedLeveraged ...View AnswerShow Answer

In the United States, which form of business organization generates the most sales and profits?

Correct AnswerverifiedShow Answer

If the sole proprietorship acquires a legal business name, the owner then has limited liability.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A corporation:

Correct AnswerverifiedShow Answer

Double taxation is a distinct advantage that corporations have over other forms of ownership.

Correct AnswerverifiedShow Answer

_____ are corporate takeovers financed by large amounts of borrowed money.

Correct AnswerverifiedShow Answer

With its ease of registration and pro-corporate policies, _____ is called the "state of incorporation." About half of the Fortune 500 companies are incorporated there.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
vertical, ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Leveraged ...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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