Exam 8: The Organizational Plan: Teams, Legal Structures, Alliances, and Directors

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

List the requirements that must be met in order for a corporation to obtain S corporation status.

Fiction County Sheltered Workshop (FCSW) 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, which of the following happens to the money Day Services will pay for FCSW?

A corporation's board of directors

Ownership in a corporation

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.

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.

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

A corporate charter should

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)

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

A limited partnership must have at least two general partners and one or more limited partners.

An owner in a professional corporation is shielded from

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

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

Lothian has asked five of his friends to serve on the board of directors of his new corporation. This is not a good idea for which of the following reasons?

Match the term with its definition. -Managers and other key persons who give a company its general direction

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

Discuss the concept of achieving balance in a management team.

Match the term with its definition. -A partner in a limited partnership who has unlimited personal liability