Business Ownership

An important consideration in picking a legal form of business is:

• How long you plan to run the business

• How much legal liability are you willing to accept

• How successful you think you will be

• How many competitors you expect to have

Under the _______ form of ownership, the business disolves upon the owners death.

• Partnership

• Corporation

• Joint Venture

• Sole Proprietorship

The biggest problem with general partnerships is:

• Shared decision making

• unlimited liability

• continuity

• disputes with partners

What percent of businesses in the US are partnerships?

• 1%

• 6%

• 30%

• 50%

__________ are earnings distributed to shareholders by a corporation.

• Distributions

• Earned income

• Stock

• Dividends

The most important benefit of of incorporating is the ______ feature of corporations.

• Limited continuity

• limited liability

• financial resources

• unlimited liability

Because it restricts the transferability of its stock, Generation Now is a __________ corporation.

• limited

• classified

• public

• private

As an LLC, Miller Shipping would closely resemble which of the following:

• S-corporation

• partnership

• Cooperative

• Sole Proprietorship

The Bill and Melinds Gates Foundation is an example of a

• LLC

• Non profit

• cooperative

• Partnership

A(n) __________ occurs when two companies join together and form a new company.

• acquisition

• merger

• hostile takeover

• joint venture