Exam 9: The Organizational Plan

A limited liability corporation:

In order for a corporation to be legally formed the owners have to register the name and articles of incorporation and meet statutory requirements.

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

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

Organization costs in a proprietorship are:

Shareholders in an S corporation have the same liability protection as shareholders in a C corporation.

Sole proprietorships usually use a calendar year for tax purposes.

The corporation is considered a legal person that is taxable and absorbs liability.

Sole proprietorships:

The board of directors:

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

_____________ have unlimited liability for the actions of the business.

Investors accept that the management team draws a large salary for their contributions in early operations.

To build a successful organization culture the entrepreneur:

In which form of organization does the owner have greatest control?

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

The partnership is the most attractive type of business formation for raising capital.

The management team of a new venture:

The proprietor is only personally liable for all aspects of the business when gross negligence occurs.

Identify the four important considerations/strategies in recruiting and assembling an effective team and organizational culture outlined in the text.