Exam 9: The Organizational Plan

In a limited liability company: 

The ________ imposes oversight responsibilities on members of the board of directors. 

The hiring process is one area of business operation that the entrepreneur should not cut back on to save time. 

Compensation for board members can take the form of all of the following except: 

The design of the organization will be the entrepreneur's formal and explicit indication to the members of the organization as to what is expected of them.Typically these expectations can be grouped into five areas,identify and describe them. 

The entrepreneur has no control over how the informal structure evolves. 

The corporation can be created only by statute. 

A company has a formal structure and an informal structure which evolves over time.This informal structure is a company's: 

Which of the following combines the tax advantages of the partnership and the corporation

Stockholders in a corporation share day-to-day control of the entrepreneur. 

The most expensive type of business to start is the partnership. 

In a partnership,the death of a general partner generally does not result in termination of the partnership. 

Discuss the six main functions of a board of directors. 

Sole proprietorships: 

Which type of ownership is the most expensive to start  

In a limited liability partnership (LLP),the death or withdrawal of a partner dissolves the partnership. 

The S corporation cannot have more than 75 shareholders. 

All the design decisions involving personnel and their roles and responsibilities reflect the ________ structure of the organization. 

The S corporation can deduct most fringe benefits for shareholders. 

Investors usually insist that the management team not operate the business as a part-time venture.