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

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 legal entity formed by two or more co-owners to operate a business for profit

The legal document that spells out the partners' rights and duties is called the

A nonprofit corporation can be for civic,educational,charitable,or religious purposes and must pass the organizational test of not making a profit.

Collin's Classic for Children with Cancer is a 501(c)3 nonprofit corporation that sells shirts.The organization will be taxed as a ____________.

An owner in a professional corporation is shielded from:

S corporations can have nonresident alien stockholders but no more than 50 stockholders.

Lothian has asked five of his friends to serve on the board of directors of his new corporation.Why is this not a good idea?

An advisory board functions like a board of directors does,except that the members are compensated for their services and the company must have Directors and Officers Liability insurance.

Larry Knave,MD,is an owner in a professional corporation.If Dr.Knave is sued for malpractice,what is the liability of the rest of the owners?

Explain the importance of social capital to a small business owner.How does this concept relate to reciprocation?

The board of directors is elected by the stockholders of a corporation.

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 -An interconnected system of relationships with other people

Jeff has started a new company that involves building planters and garden art from local sustainable products.Should he form a board of directors or an advisory council?

In a limited partnership,which partner remains bound by all debts of the business?

A corporate charter should be:

A 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 -An organizational relationship that links two or more independent business entities in a common endeavor

As it relates to new businesses,one function of a social network is to:

Rod is starting a new business as a drystone mason where he builds and repairs rock walls that do not have any mortar.He has completed national certification and will be working most jobs by himself.What issues should he consider in choosing the legal form? Based on this information,what legal form would you recommend for him to choose?

Among the advantages of hiring family for leadership positions in a new company is the fact that: