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

What are the qualifications of partners?

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 -A partner who is not active in the management of the partnership and has limited personal liability

The liability of owners is greater with a sole proprietorship than with a general partnership.

The strategic alliance between The Center for Systems Management and Technovative Marketing is an example of how:

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 governing body of a corporation,elected by the stockholders

Typically strategic alliances are harder to set up than to maintain.

The management team of a small business should focus on competent insiders as opposed to outside specialists.

In the term "B corporation," the B stands for "business."

Fiction County Sheltered Workshop is a 501(c)(3)corporation.Day Services,a C corporation operating in the same county,has offered to buy FCSW.If this transaction occurs,what happens to the money Day Services will pay for FCSW?

Zeno,Zella,and Zorro wish to form a partnership.Zeno is putting up 60% of the capital;Zella is putting up 40%,and Zorro is putting in no capital but will manage the business.In the absence of a provision in the partnership agreement,how will the liability and profits be distributed?

For the best success,strategic alliance partners should sign contracts with stated expectations and an "easy out" clause.

Sole proprietors often benefit from fringe benefits such as tax-free insurance plans.

Linda has assembled a list of potential directors for her board.Whom should she not include?

A key characteristic of a partnership is that each partner

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 -A powerful sense of obligation to repay in kind what another has done for or provided to us

To be eligible to be an S corporation,a firm must:

Upon the death of the majority stockholder in a corporation,direct control may pass to:

A typical common stockholder of a corporation:

Partners must contribute capital or assets to form a partnership.

Millie has a sole proprietorship that is her only source of income.What legal action should she take to prevent the business from being ruined if she becomes incapacitated?