Question 1

Which of the following is an advantage of general partnerships?

Accepted Answer

A) Partners can share the burden of running the business. 
B) All partners have limited liability. 
C) If a partner withdraws, his investment stays with the company. 
D) Partnerships have no scope for disagreements. 
A) Partners can share the burden of running the business. 
B) All partners have limited liability. 
C) If a partner withdraws, his investment stays with the company. 
D) Partnerships have no scope for disagreements.

Question 2

Which of the following would be an example of a corporation?

Accepted Answer

A) Sparkles is a business firm owned by a single person who takes up complete liability for the business. 
B) The owners of Octave Inc. are not personally responsible for the debts and obligations of the firm. 
C) The profits earned by Luxe Clothing are legally considered as the income of the firm's owners. 
D) The dissolution of Nutrimax Pizzas results in its owners having to repay the debts of the firm. 
A) Sparkles is a business firm owned by a single person who takes up complete liability for the business. 
B) The owners of Octave Inc. are not personally responsible for the debts and obligations of the firm. 
C) The profits earned by Luxe Clothing are legally considered as the income of the firm's owners. 
D) The dissolution of Nutrimax Pizzas results in its owners having to repay the debts of the firm.

Question 3

Beany Corp. and Kaffe Inc.are leading producers and distributors of coffee beans and have joined together to become the world's largest distributor of coffee. This is an example of a(n)_____.

Accepted Answer

A) vertical merger 
B) horizontal merger 
C) conglomerate merger 
D) upward merger 
A) vertical merger 
B) horizontal merger 
C) conglomerate merger 
D) upward merger

Question 4

A sole proprietorship is a form of business ownership in which:

Accepted Answer

A) a business is considered a legal entity that is separate from its owners. 
B) a single owner actively manages a company. 
C) two or more people act as co-owners of a company. 
D) the owners of a business are offered limited liability and flexible tax treatment. 
A) a business is considered a legal entity that is separate from its owners. 
B) a single owner actively manages a company. 
C) two or more people act as co-owners of a company. 
D) the owners of a business are offered limited liability and flexible tax treatment.

Question 5

A general partnership avoids the problem of _________ endemic to corporations.

Accepted Answer

A) disagreements 
B) unlimited liability 
C) double taxation 
D) withdrawal 
A) disagreements 
B) unlimited liability 
C) double taxation 
D) withdrawal

Question 6

As an artificial person, a _________ can legally engage in virtually any business activity a natural person can pursue, including owning property, entering into binding contracts, and initiating legal actions.

Accepted Answer

A) partnership 
B) corporation 
C) limited liability company 
D) sole proprietorship 
A) partnership 
B) corporation 
C) limited liability company 
D) sole proprietorship

Question 7

Which of the following is a consequence of a corporation being a separate entity from its owners?​

Accepted Answer

A) The owners are not personally responsible for the obligations of a company. 
B) The articles of incorporation are not required to set up a corporation. 
C) A corporation cannot enter into binding contracts in its name. 
D) The death or withdrawal of an owner dissolves a corporation. 
A) The owners are not personally responsible for the obligations of a company. 
B) The articles of incorporation are not required to set up a corporation. 
C) A corporation cannot enter into binding contracts in its name. 
D) The death or withdrawal of an owner dissolves a corporation.

Question 8

Sole proprietors have _________ for the debts of their companies.

Accepted Answer

A) no liability 
B) limited liability 
C) unlimited liability 
D) shared liability 
A) no liability 
B) limited liability 
C) unlimited liability 
D) shared liability

Question 9

Michael owns 100 shares of stock in the Samson Electricals Corporation, but as a stockholder he does not have the right to vote in stockholders' meetings. In this scenario, Michael owns common stock.

Accepted Answer

A) True 
 B)False

Question 10

List and describe any two forms of business ownership.

Accepted Answer

A corporation is a business entity creat

Which of the following is an advantage of general partnerships?

Which of the following would be an example of a corporation?

Beany Corp. and Kaffe Inc.are leading producers and distributors of coffee beans and have joined together to become the world's largest distributor of coffee. This is an example of a(n)_____.

A sole proprietorship is a form of business ownership in which:

A general partnership avoids the problem of _________ endemic to corporations.

As an artificial person, a _________ can legally engage in virtually any business activity a natural person can pursue, including owning property, entering into binding contracts, and initiating legal actions.

Which of the following is a consequence of a corporation being a separate entity from its owners?

Sole proprietors have _________ for the debts of their companies.

Michael owns 100 shares of stock in the Samson Electricals Corporation, but as a stockholder he does not have the right to vote in stockholders' meetings. In this scenario, Michael owns common stock.

List and describe any two forms of business ownership.

Business Now: Change Is the Only Constant

Economics: The Framework for Business

The World Marketplace: Business Without Borders

Business Ethics and Social Responsibility: Doing Well by Doing Good

Business Communication: Creating and Delivering Messages that Matter

Small Business and Entrepreneurship: Economic Rocket Fuel

Accounting: Decision Making by the Numbers

Finance: Acquiring and Using Funds to Maximize Value

Financial Markets: Allocating Financial Resources

Marketing: Building Profitable Customer Connections

Product and Promotion: Creating and Communicating Value

Distribution and Pricing: Right Product, Right Person, Right Place, Right Price

Management, Motivation and Leadership: Bringing Business to Life

Human Resources Management: Building a Top Quality Workforce

Managing Information and Technology: Finding New Ways to Learn and Link

Operations Management: Putting It All Together

Filters

Exam 6: Business Formation: Choosing the Form that Fits

Which of the following is an advantage of general partnerships?

Which of the following would be an example of a corporation?

Beany Corp. and Kaffe Inc.are leading producers and distributors of coffee beans and have joined together to become the world's largest distributor of coffee. This is an example of a(n)_____.

A sole proprietorship is a form of business ownership in which:

A general partnership avoids the problem of _________ endemic to corporations.

As an artificial person, a _________ can legally engage in virtually any business activity a natural person can pursue, including owning property, entering into binding contracts, and initiating legal actions.

Which of the following is a consequence of a corporation being a separate entity from its owners?​

Sole proprietors have _________ for the debts of their companies.

Michael owns 100 shares of stock in the Samson Electricals Corporation, but as a stockholder he does not have the right to vote in stockholders' meetings. In this scenario, Michael owns common stock.

List and describe any two forms of business ownership.

Business Now: Change Is the Only Constant

Economics: The Framework for Business

The World Marketplace: Business Without Borders

Business Ethics and Social Responsibility: Doing Well by Doing Good

Business Communication: Creating and Delivering Messages that Matter

Small Business and Entrepreneurship: Economic Rocket Fuel

Accounting: Decision Making by the Numbers

Finance: Acquiring and Using Funds to Maximize Value

Financial Markets: Allocating Financial Resources

Marketing: Building Profitable Customer Connections

Product and Promotion: Creating and Communicating Value

Distribution and Pricing: Right Product, Right Person, Right Place, Right Price

Management, Motivation and Leadership: Bringing Business to Life

Human Resources Management: Building a Top Quality Workforce

Managing Information and Technology: Finding New Ways to Learn and Link

Operations Management: Putting It All Together

Filters

Which of the following is a consequence of a corporation being a separate entity from its owners?