Business chap 3-4

A(n) ___________________ is a state-chartered legal entity with authority to act and to have liability separate from its owners. 

• partnership
• sole proprietorship
• conventional corporation

• limited liability company

A major advantage of S corporations is that they:

• can have more stockholders than a C corporation

• can operate in foreign nations as if they were domestic corporations

• require less paperwork to set up than a C corporation does

• avoid the problem of double taxation associated with conventional corporations

Which of the following is an advantage of the corporate form of business when compared to sole proprietorships and partnerships?

• ease of formation

• lower taxes

• simplified paperwork

• 
  limited liability of owners

A(n) _____________ is a company that has a proven business model and is willing to sell the rights to use the business model to others so that they can sell the same product or service within a given territory. 

• franchisor
• retailer
• distributor
• licensee

Compared to a sole proprietorship, which of the following is considered an advantage of a general partnership?

• ability to pool financial resources

• unlimited liability for all owners

• division of profits among owners

• ease and flexibility in transferring shares of ownership to others

What are the three types of corporate mergers?

• economic, geographic, and financial

• horizontal, vertical, and conglomerate

• strategic, tactical, and operational

• domestic, international, and global

To many businesspeople, one of the major attractions of a sole proprietorship is:

• the ability to obtain additional financial resources

• the protection of limited liability

• an unlimited life span

• the chance to be their own boss

The organizational structure of a corporation permits:

• the company management to elect the Board of Directors.

• stockholders to elect the Board of Directors.

• stockholders to elect the officers and management team.

• employees (by committee) to elect the officers of the company.

A (a)   is an organization that is owned and controlled by the people who use it—producers, consumers and workers with similar needs pool their resources for mutual gain.

• corporation
• nonprofit organization
• partnership
• cooperative

Which of the following statements is the most accurate? A foreign corporation:

• does business in one or more states, but is chartered in another state.

• is 50% owned by individuals or companies from another nation.

• is headquartered in another nation.

• is the same thing as a multinational corporation.