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

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

The number of small business owners who are choosing to go it alone is increasing significantly because this option has been made increasingly manageable by

Match the term with its definition. -A form of corporation for enterprises established to serve civic, educational, charitable, or religious purposes; not for generation of profits

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

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

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

Jeanne, a Canadian citizen, would like to invest in Ingrid's startup. If Ingrid organizes her business as a(n) _____, Jeanne is prohibited from investing.

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

Match the term with its definition. -Liability on the part of an owner that extends beyond the owner's investment in the business

A strategic alliance is a(n)

What steps could an entrepreneur take to improve his or her chances of success when forming a strategic alliance?

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

Match the term with its definition. -The liability of each partner resulting from any one partner's ability to legally bind the other partners

Cameron is creating the document that specifies the size of the board, the duties of the directors, voting rights, etc. This document is known as the

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

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

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

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

Max chose to operate his production studio as a sole proprietorship even though his attorney cautioned that he was

Zeno, Zella, and Zorro wish to form a partnership. Zeno is putting up 60 percent of the capital, Zella is putting up 40 percent, 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?