Question 1

Before a corporation can obtain a corporate harter, it must submit charter information to the county clerk where the business is located.

Accepted Answer

A) True 
 B)False  False

Question 2

A form of corporation that has no more than 100 stockholders and eliminates the problem of double taxation is a(n)

Accepted Answer

A)  limited-liability company. 
B)  limited-liability partnership. 
C)  domestic corporation. 
D)  S corporation. 
E)  joint-venture corporation. 
A)  limited-liability company. 
B)  limited-liability partnership. 
C)  domestic corporation. 
D)  S corporation. 
E)  joint-venture corporation. D

Question 3

Preferred stockholders are paid dividends before common stockholders.

Accepted Answer

A) True 
 B)False  True

Question 4

Today, there are more corporations than there are sole proprietorships and partnerships in the United States.

Accepted Answer

A) True 
 B)False

Question 5

The people who start a corporation are called ncorporators.

Accepted Answer

A) True 
 B)False

Question 6

Limited partners in a limited partnership can lose no more than the money they invest in the business.

Accepted Answer

A) True 
 B)False

Question 7

A corporation whose stock is bought and sold on security exchanges and can be purchased by any individual is referred to as a(n) __________ corporation.

Accepted Answer

A)  closed 
B)  domestic 
C)  open 
D)  foreign 
E)  exchange 
A)  closed 
B)  domestic 
C)  open 
D)  foreign 
E)  exchange

Question 8

There are more sole proprietorships in the United States than there are partnerships or corporations.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is an advantage of a corporation?

Accepted Answer

A)  Limited liability 
B)  Single taxation 
C)  Lack of government regulations 
D)  Ease of formation 
E)  Unlimited liability 
A)  Limited liability 
B)  Single taxation 
C)  Lack of government regulations 
D)  Ease of formation 
E)  Unlimited liability

Question 10

Ease of raising capital is a characteristic of which type of ownership?

Accepted Answer

A)  Cooperatives 
B)  Corporations 
C)  Sole proprietorships 
D)  Not-for-profit corporations 
E)  Foreign corporations 
A)  Cooperatives 
B)  Corporations 
C)  Sole proprietorships 
D)  Not-for-profit corporations 
E)  Foreign corporations

Question 11

The type of business that is the easiest to form is the

Accepted Answer

A)  joint venture. 
B)  syndicate. 
C)  sole proprietorship. 
D)  corporation. 
E)  partnership. 
A)  joint venture. 
B)  syndicate. 
C)  sole proprietorship. 
D)  corporation. 
E)  partnership.

Question 12

Corporate stock that has voting rights is referred to as __________ stock.

Accepted Answer

A)  charter 
B)  preferred 
C)  treasury 
D)  domestic 
E)  common 
A)  charter 
B)  preferred 
C)  treasury 
D)  domestic 
E)  common

Question 13

Which of the following might a firm use to acquire another company in a hostile takeover?

Accepted Answer

A)  Syndicate 
B)  Joint venture 
C)  Conglomerate merger 
D)  Tender offer 
E)  Poison pill 
A)  Syndicate 
B)  Joint venture 
C)  Conglomerate merger 
D)  Tender offer 
E)  Poison pill

Question 14

The corporate officers of a corporation are elected by the stockholders.

Accepted Answer

A) True 
 B)False

Question 15

The term limited partnership is used to describe a business where all partners have general partnership status.

Accepted Answer

A) True 
 B)False

Question 16

The state of __________ offers the lowest organizational costs for a corporation.

Accepted Answer

A)  New York 
B)  Delaware 
C)  Utah 
D)  Alaska 
E)  Florida 
A)  New York 
B)  Delaware 
C)  Utah 
D)  Alaska 
E)  Florida

Question 17

The type of business ownership that combines the benefits of a corporation and a partnership while avoiding some of the restrictions and disadvantages of those forms of ownership is a(n)

Accepted Answer

A)  pseudo corporation. 
B)  open corporation. 
C)  limited-liability company. 
D)  quasi-government corporation. 
E)  not-for-profit corporation. 
A)  pseudo corporation. 
B)  open corporation. 
C)  limited-liability company. 
D)  quasi-government corporation. 
E)  not-for-profit corporation.

Question 18

For a sole proprietorship and partnership, nlimited liability is a legal concept that holds a business owner personally responsible for all the debts of the business.

Accepted Answer

A) True 
 B)False

Question 19

A vertical merger takes place between firms in completely different industries.

Accepted Answer

A) True 
 B)False

Before a corporation can obtain a corporate harter, it must submit charter information to the county clerk where the business is located.

A form of corporation that has no more than 100 stockholders and eliminates the problem of double taxation is a(n)

Preferred stockholders are paid dividends before common stockholders.

Today, there are more corporations than there are sole proprietorships and partnerships in the United States.

The people who start a corporation are called ncorporators.

Limited partners in a limited partnership can lose no more than the money they invest in the business.

A corporation whose stock is bought and sold on security exchanges and can be purchased by any individual is referred to as a(n) __________ corporation.

There are more sole proprietorships in the United States than there are partnerships or corporations.

Which of the following is an advantage of a corporation?

Ease of raising capital is a characteristic of which type of ownership?

The type of business that is the easiest to form is the

Corporate stock that has voting rights is referred to as __________ stock.

Which of the following might a firm use to acquire another company in a hostile takeover?

The corporate officers of a corporation are elected by the stockholders.

The term limited partnership is used to describe a business where all partners have general partnership status.

The state of __________ offers the lowest organizational costs for a corporation.

The type of business ownership that combines the benefits of a corporation and a partnership while avoiding some of the restrictions and disadvantages of those forms of ownership is a(n)

For a sole proprietorship and partnership, nlimited liability is a legal concept that holds a business owner personally responsible for all the debts of the business.

A vertical merger takes place between firms in completely different industries.

Exploring the World of Business and Economics

Ethics and Social Responsibility in Business

Global Business

Small Business, Entrepreneurship, and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Exploring Social Media and E-Business

Using Management and Accounting Information

Mastering Financial Management

Filters

Exam 4: Choosing a Form of Business Ownership

Before a corporation can obtain a corporate harter, it must submit charter information to the county clerk where the business is located.

A form of corporation that has no more than 100 stockholders and eliminates the problem of double taxation is a(n)

Preferred stockholders are paid dividends before common stockholders.

Today, there are more corporations than there are sole proprietorships and partnerships in the United States.

The people who start a corporation are called ncorporators.

Limited partners in a limited partnership can lose no more than the money they invest in the business.

A corporation whose stock is bought and sold on security exchanges and can be purchased by any individual is referred to as a(n) __________ corporation.

There are more sole proprietorships in the United States than there are partnerships or corporations.

Which of the following is an advantage of a corporation?

Ease of raising capital is a characteristic of which type of ownership?

The type of business that is the easiest to form is the

Corporate stock that has voting rights is referred to as __________ stock.

Which of the following might a firm use to acquire another company in a hostile takeover?

The corporate officers of a corporation are elected by the stockholders.

The term limited partnership is used to describe a business where all partners have general partnership status.

The state of __________ offers the lowest organizational costs for a corporation.

The type of business ownership that combines the benefits of a corporation and a partnership while avoiding some of the restrictions and disadvantages of those forms of ownership is a(n)

For a sole proprietorship and partnership, nlimited liability is a legal concept that holds a business owner personally responsible for all the debts of the business.

A vertical merger takes place between firms in completely different industries.

Exploring the World of Business and Economics

Ethics and Social Responsibility in Business

Global Business

Small Business, Entrepreneurship, and Franchises

Understanding the Management Process

Creating a Flexible Organization

Producing Quality Goods and Services

Attracting and Retaining the Best Employees

Motivating and Satisfying Employees and Teams

Building Customer Relationships Through Effective Marketing

Creating and Pricing Products That Satisfy Customers

Distributing and Promoting Products

Exploring Social Media and E-Business

Using Management and Accounting Information

Mastering Financial Management

Filters