Business Organization Ch. 8
Which of the following is an example of a merger?
One company combines with another company that supplies it with raw materials.
In a limited liability partnership, all partners
are limited from personal liability in certain situations.
The most important decisions in a corporation are made by the
board of directors.
A merger that combines more than three businesses that make unrelated products is called a
conglomerate.
Which type of cooperative sells merchandise to its members at reduced prices?
consumer
XWhich is NOT a type of partnership?
cooperative
A corporation can offer as many shares of stock as are allowed by the
corporate charter.
Which type of business organization has shareholders?
corporation
Most large businesses are
corporations.
Liability is the
legal obligation to pay debts.
Which of the following is an advantage of a sole proprietorship?
not highly regulated by the government
In a limited partnership,
only one partner is required to be general partner.
Almost all non-profit organizations
provide services rather than goods.
A disadvantage of a franchise is that the franchise owner must
sacrifice some freedom in return for the parent company's guidance.
In return for a fee to a franchiser, a business owner receives the right to
sell the franchiser's goods and services.
One of the ways a corporation can raise money is by
selling stock on the stock market.
9. The most common form of business organization is the
sole proprietorship.
Which of the following is NOT a government requirement when starting a sole proprietorship?
to give clients 90 days notice prior to shutting down operations
A partnership is a business organization owned by
two or more individuals.
Museums, public schools, and YMCAs are all
exempt from paying income taxes.