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

Match the term with its definition.Some terms may not be used. a.advisory board b.board of directors c.general partner d.legal entity e.limited liability company f.limited partner g.nonprofit corporation h.partnership agreement i.social capital j.social network -The advantage created by an individual's connections with other people

Hannah makes delicious baked goods but has no retail space.She has contracted with a local grocer to sell her wares in the grocery store.This arrangement is known as a(n):

A partnership agreement states explicitly the rights and duties of partners with each party assuming joint and several liability.

Evan has received permission from his state to form a corporation for his startup,expecting his liability would be limited to the amount of his investment.But his bank asked him to assume personal liability before it would grant him a business loan.Why would the bank make this demand?

What is the principal advantage of an S corporation over a C corporation?

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 -Verification of whether a nonprofit organization is staying true to its stated purpose

Discuss the differences in the continuity of business for sole proprietorships,partnerships,and corporations.

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 -A partnership with at least one general partner and one or more limited partners

A management team is often stronger than an individual entrepreneur because it provides a diversity of skills and assurance of continuity.

Partners always share profits and losses equally.

An entrepreneur can best build social capital by:

Creating a partnership allows a business to pool the managerial talents and capital of those individuals joining together as partners.

A partnership reports the income it earns to the Internal Revenue Service,but the partnership itself does not pay any taxes.

Julie and Diane are starting a new company decorating wedding cakes that are unique in their design and structure.Both women are certified chefs and have ten years of experience between them.What issues should they consider in choosing between a general partnership or a limited liability company? Which form would you recommend?

Harvey would like to support his friend's new business financially but also wants to protect his assets in case the business fails.Which form of ownership would you recommend?

To maintain status as a corporation,the corporation must:

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 -​A form of corporation that creates a positive social or environmental impact while maintaining high standards of transparency and accountability

The sole proprietorship is a business owned by two or more people but operated by only one person.

Which organizational type results in the business owner having unlimited liability?

The compensation paid to board members: