Question 1

Unless specified in the charter, a corporation has a

Accepted Answer

A)  legal life of one decade.
B)  life of seventeen years, which is renewable.
C)  life of fifty years.
D)  perpetual life.
E)  legally recognized life, which varies from state to state.F) All of the above
G) A) and E)

Question 2

All not-for-profit corporations rely solely on volunteers to perform services of the organization.

Accepted Answer

A) True 
 B)False

Question 3

Economists, financial analysts, corporate managers, and stockholders all agree that mergers are good for both the company and the economy.

Accepted Answer

A) True 
 B)False

Question 4

Define "growth from within" in regard to a corporation. Is it generally a suggested path for corporations?

Accepted Answer

Many corporations grow by expanding thei...

Question 5

To gain access to one another's markets, several U.S. and Japanese automobile manufacturers (for example, Chrysler and Mitsubishi)  are engaging in temporary alliances to manufacture and market certain models of cars. These types of partnerships are known as

Accepted Answer

A)  limited-liability companies.
B)  S-corporations.
C)  cooperatives.
D)  joint ventures.
E)  foreign corporations.F) C) and D)
G) B) and C)

Question 6

​Maurice and Stanley have sold stock to eight of their friends and have enough money to expand the business and to open another store. During a shareholders' meeting, Maurice, Stanley, and the eight other shareholders unanimously agreed that it would be better to pass through the company's profits and losses like a partnership. All of the shareholders are individuals and United States citizens. The shareholders could vote to change the corporation into a(n)

Accepted Answer

A)  ​S-corporation.
B)  ​limited liability company.
C)  ​alien corporation.
D)  ​foreign corporation.E) A) and D)
F) None of the above

Question 7

Jack has been saving his excess funds for several years and has contemplated entering a partnership with a friend from college. Jack hesitates because he knows that it is ____ to invest money in a partnership and ____ to get the money back out.

Accepted Answer

A)  difficult; difficult
B)  easy; difficult
C)  easy; impossible
D)  easy; easy
E)  difficult; easyF) All of the above
G) B) and C)

Question 8

Which of the following is an advantage of the corporate form of organization?

Accepted Answer

A)  Ownership of stock is easy to transfer.
B)  Forming a corporation is a complex and costly process.
C)  The corporation and its stockholders pay taxes on profits.
D)  A corporation must submit detailed information to government agencies.
E)  It is difficult to keep operations confidential because of required reports.F) C) and E)
G) All of the above

Question 9

Which of the following states offers the lowest organizational costs for corporations?

Accepted Answer

A)  Delaware
B)  Georgia
C)  Michigan
D)  New York
E)  AlaskaF) A) and B)
G) All of the above

Question 10

Unlimited liability holds a sole proprietor personally responsible for all the debts of the business.

Accepted Answer

A) True 
 B)False

Question 11

A limited-liability company is taxed like a corporation.

Accepted Answer

A) True 
 B)False

Question 12

The partner who can lose only what he or she has invested in a business is the

Accepted Answer

A)  general partner.
B)  sole proprietor.
C)  manager.
D)  employee.
E)  limited partner.F) A) and B)
G) B) and E)

Question 13

A temporary association organized to perform a specific task requiring a large amount of capital is known as a(n)

Accepted Answer

A)  conglomerate.
B)  cooperative.
C)  master limited partnership.
D)  syndicate.
E)  authority.F) None of the above
G) D) and E)

Question 14

What is an owner of a corporation called? What is the difference between a closed corporation and an open corporation?

Accepted Answer

An owner of a corporation is a stockhold...

Question 15

A partnership formed to operate for a specific time period or to accomplish a specific purpose is known as a

Accepted Answer

A)  conglomerate.
B)  cooperative.
C)  joint venture.
D)  corporation.
E)  joint merger.F) A) and B)
G) C) and D)

Question 16

When a business incorporates, it receives articles of incorporation from the Internal Revenue Service.

Accepted Answer

A) True 
 B)False

Question 17

Which of the following is a disadvantage of the corporate form of organization?

Accepted Answer

A)  Both the corporation and its stockholders are taxed on profits retained and distributed.
B)  Ownership of stock is easy to transfer.
C)  More capital can be raised by the corporate form.
D)  Corporations can hire better managers.
E)  The organization survives its owners.F) B) and C)
G) B) and E)

Question 18

Boeing is incorporated in Seattle, Washington. It has a large facility in Huntsville, Alabama, and is considered a(n)  ____ because it conducts business within Alabama.

Accepted Answer

A)  outsider
B)  domestic corporation
C)  foreign corporation
D)  tax write-off
E)  alien corporationF) B) and E)
G) B) and D)

Question 19

If Avon and Merck joined together to produce a cream that slows down the aging process, this would be called a(n)

Accepted Answer

A)  cooperative.
B)  joint venture.
C)  combined corporation.
D)  S-corporation.
E)  partnership.F) B) and E)
G) B) and D)

Question 20

How do management tasks differ for a general partner and a limited partner?

Accepted Answer

In a general partnership, all partners a...

Exam 4: Choosing a Form of Business Ownership

How do management tasks differ for a general partner and a limited partner?

Correct Answer
verified
In a general partnership, all partners a...
View Answer

Economists, financial analysts, corporate managers, and stockholders all agree that mergers are good for both the company and the economy.

Correct Answer
verified

Which of the following is a disadvantage of the corporate form of organization?

Correct Answer
verified

A partnership formed to operate for a specific time period or to accomplish a specific purpose is known as a

Correct Answer
verified

The partner who can lose only what he or she has invested in a business is the

Correct Answer
verified

Jack has been saving his excess funds for several years and has contemplated entering a partnership with a friend from college. Jack hesitates because he knows that it is to invest money in a partnership and to get the money back out.

Correct Answer
verified

Which of the following is an advantage of the corporate form of organization?

Correct Answer
verified

A limited-liability company is taxed like a corporation.

Correct Answer
verified

Unlimited liability holds a sole proprietor personally responsible for all the debts of the business.

Correct Answer
verified

A temporary association organized to perform a specific task requiring a large amount of capital is known as a(n)

Correct Answer
verified

Correct Answer
verified

All not-for-profit corporations rely solely on volunteers to perform services of the organization.

Correct Answer
verified

Boeing is incorporated in Seattle, Washington. It has a large facility in Huntsville, Alabama, and is considered a(n) ____ because it conducts business within Alabama.

Correct Answer
verified

Which of the following states offers the lowest organizational costs for corporations?

Correct Answer
verified

Unless specified in the charter, a corporation has a

Correct Answer
verified

When a business incorporates, it receives articles of incorporation from the Internal Revenue Service.

Correct Answer
verified

If Avon and Merck joined together to produce a cream that slows down the aging process, this would be called a(n)

Correct Answer
verified

What is an owner of a corporation called? What is the difference between a closed corporation and an open corporation?

Correct Answer
verified
An owner of a corporation is a stockhold...
View Answer

Define "growth from within" in regard to a corporation. Is it generally a suggested path for corporations?

Correct Answer
verified
Many corporations grow by expanding thei...
View Answer

To gain access to one another's markets, several U.S. and Japanese automobile manufacturers (for example, Chrysler and Mitsubishi) are engaging in temporary alliances to manufacture and market certain models of cars. These types of partnerships are known as

Correct Answer
verified

Exam 4: Choosing a Form of Business Ownership

How do management tasks differ for a general partner and a limited partner?

Correct AnswerverifiedIn a general partnership, all partners a...View AnswerShow Answer

Economists, financial analysts, corporate managers, and stockholders all agree that mergers are good for both the company and the economy.

Correct AnswerverifiedShow Answer

Which of the following is a disadvantage of the corporate form of organization?

Correct AnswerverifiedShow Answer

A partnership formed to operate for a specific time period or to accomplish a specific purpose is known as a

Correct AnswerverifiedShow Answer

The partner who can lose only what he or she has invested in a business is the

Correct AnswerverifiedShow Answer

Jack has been saving his excess funds for several years and has contemplated entering a partnership with a friend from college. Jack hesitates because he knows that it is ____ to invest money in a partnership and ____ to get the money back out.

Correct AnswerverifiedShow Answer

Which of the following is an advantage of the corporate form of organization?

Correct AnswerverifiedShow Answer

A limited-liability company is taxed like a corporation.

Correct AnswerverifiedShow Answer

Unlimited liability holds a sole proprietor personally responsible for all the debts of the business.

Correct AnswerverifiedShow Answer

A temporary association organized to perform a specific task requiring a large amount of capital is known as a(n)

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

All not-for-profit corporations rely solely on volunteers to perform services of the organization.

Correct AnswerverifiedShow Answer

Boeing is incorporated in Seattle, Washington. It has a large facility in Huntsville, Alabama, and is considered a(n) ____ because it conducts business within Alabama.

Correct AnswerverifiedShow Answer

Which of the following states offers the lowest organizational costs for corporations?

Correct AnswerverifiedShow Answer

Unless specified in the charter, a corporation has a

Correct AnswerverifiedShow Answer

When a business incorporates, it receives articles of incorporation from the Internal Revenue Service.

Correct AnswerverifiedShow Answer

If Avon and Merck joined together to produce a cream that slows down the aging process, this would be called a(n)

Correct AnswerverifiedShow Answer

What is an owner of a corporation called? What is the difference between a closed corporation and an open corporation?

Correct AnswerverifiedAn owner of a corporation is a stockhold...View AnswerShow Answer

Define "growth from within" in regard to a corporation. Is it generally a suggested path for corporations?

Correct AnswerverifiedMany corporations grow by expanding thei...View AnswerShow Answer

To gain access to one another's markets, several U.S. and Japanese automobile manufacturers (for example, Chrysler and Mitsubishi) are engaging in temporary alliances to manufacture and market certain models of cars. These types of partnerships are known as

Correct AnswerverifiedShow Answer

Correct Answer
verified
In a general partnership, all partners a...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Jack has been saving his excess funds for several years and has contemplated entering a partnership with a friend from college. Jack hesitates because he knows that it is to invest money in a partnership and to get the money back out.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
An owner of a corporation is a stockhold...
View Answer

Correct Answer
verified
Many corporations grow by expanding thei...
View Answer

Correct Answer
verified