FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 6: Forms of Business Ownership

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 51

Multiple Choice

Review LaterAdd Note

Review Later

A merger involving a computer manufacturer and an electronics retailer that sells its computers would be an example of a ________.

A) vertical merger
B) horizontal merger
C) product extension merger
D) conglomeration

E) A) and B)
F) A) and C)

Correct Answer

verified

Show Answer

Question 52

Multiple Choice

Review LaterAdd Note

Review Later

All of the following EXCEPT ________ would be an advantage to partnership.

A) pooled skills
B) increased financial resources
C) increased available time
D) unlimited liability

E) C) and D)
F) B) and D)

Correct Answer

verified

Show Answer

Question 53

True/False

Review LaterAdd Note

Partnerships are taxed at the lowest corporate tax rate.

In a partnership, all profits and losses flow through each partner's ________.

The owners of a corporation are known as general corporate partners.

In a general partnership, all partners are entitled to an equal share of the firm's profits.

After a successful five years, Double Z, LLC (a retirement ranch for race horses)thinks it may be able to attract donations from animal activist groups and even the federal government if it becomes a nonprofit corporation. Explain what changes the owners of Double Z would need to make in order to be a not-for-profit corporation?

A partner who invests money in a business but is not involved in the day-to-day operation and is only risking capital equal to what they have contributed is called a ________.

The biggest difference between general and limited partnerships involves who accepts most of the business liability.

One disadvantage of sole proprietorship is the ________.

Alex and Bailey opened a dance studio together as general partners. They each invested $10,000 of their personal savings. After one year in business, they decided to close the doors. Their partnership agreement said they would divide profits and losses 50/50. They have more debt than assets. Alex and Bailey will each ________.

A corporation is a specific form of business that is legally formed under state laws and is considered a separate entity.

Jenny and Rose are hairstylists that have decided to open their own salon by starting a general partnership. The first step to ensuring a successful partnership would be to ________.

Unlimited liability with respect to business ownership means ________.

When a not-for-profit corporations dissolves, its assets are ________.

If you want to terminate your ownership in a publicly traded corporation, you simply sell your shares.

Dan is excited to start marketing and selling his new indoor practice hockey tarps and would like to start today. He already has several hockey associations waiting to make purchases. Dan's best option for starting his business quickly and hassle free is a(n) ________.

S corporations are similar to C corporations because they both pay corporate income taxes.

Tom has agreed to become a partner in a business. Since he will provide 30% of the capital to start the company, he is entitled to 30% of any profits the company earns during its first year of operation.

A small group of businesspeople decide that the best way to do business, while simultaneously protecting their own assets, is to form a corporation. What steps do they need to take in order to successfully establish a corporation?