Exam 8: The Organizational Plan: Teams, legal Structures, alliances, and Directors

Which group best defines a partnership?

The right to buy new shares of stock in proportion to stock already owned is called a:

A significant difference between a board of directors and an advisory board is:

The LLC differs from the C corporation in that the LLC avoids financial complications from double taxation.

Match the term with its definition.Some terms may not be used. a.advisory board b.corporation c.management team d.organizational test e.partnership agreement f.piercing the corporate veil g.preemptive right h.reciprocation i.stock certificate j.strategic alliance -The right of stockholders to buy new shares of stock before they are offered to the public

If partners cannot resolve disputes between themselves they may be wise to hire a(n):

Lauren,a partner in Jales & Jales Bonding Company,manages its day-to-day operations.She is considered to be a _____ partner.

For a corporate charter to be obtained,

One benefit of an S corporation is that it allows shareholders to receive dividends without:

Match the terms with their definitions.Some terms may not be used. a.advisory board b.B corporation c.C corporation d.corporate bylaws e.corporate charter f.limited partnership g.partnership h.professional corporation i.S corporation j.sole proprietorship k.​unlimited liability -Liability on the part of an owner that extends beyond the owner's investment in the business

Because the corporation is a legal entity,one of its responsibilities is to:

The concept of balance on the management team means that the entrepreneur should not be wrapped up too much in one area,such as sales or production,but be well rounded.

Frank would like to avoid personal financial loss if his business idea does not work.Which form of ownership would you suggest?

Identify the three general forms of legal organization.What are the major differences between these forms?

As she considered becoming a partner in a new business venture,Valerie asked her potential partner about a(n)___________ in the event that the partnership did not work out as expected.

In what situations would it be best for a company to be formed as a C corporation as opposed to a limited liability company?

A corporation's board of directors:

Explain the advantages of having outsiders (non-employees)as board members.

Robbie's financial advisor referred a customer to Robbie's new business.Under the concept of ___________,Robbie is now obligated to return the favor.

Emile has very little money with which to start his business so he wants to keep the cost of forming his company as low as possible.Which form of ownership would you recommend for Emile?