Chapter 3: Forms of Ownership (Questions)

business may be complicated to terminate depending on contract

partnership

it is an association of two or more business owners

partnership

the ability to combine skills and knowledge is advantage of a

partnership

has limited liability to the extent of the investment

partnership, corporation

Jocelyn knows customers by name - which advantage of small business?

personal relationships with customers

what technique should an investor use to gather votes to control a company

proxy fight

true or false: the amount paid for stock is the most a shareholder can lose in the corporation

true

the concept of being personally responsible for all debts of a business

unlimited liability

money invested in small firms that have potential

venture capital

PepsiCo acquired Pizza Hut. What type of merger?

vertical

dividends are also taxed

corporation

double taxed

corporation

owned by shareholders

corporation

requires written agreement

corporation

this type of business may stay in existence infinitely

corporation

how long frozen investment

3 to 5 years

corporate officers are appointed by...

BOD

allows a corporation to avoid double taxation

S-corporation

a govt agency that assists, counsels, and protects the interests of small businesses in the US

SBA

group of retired business people who volunteer services to small business through SBA

SCORE

what is it when business assumes assets, liabilities, and responsibilities of another

acquisition

a company chartered in a foreign country doing business in the US

alien corporation

application to become corporation

articles of incorporation

name of partnership contract

articles of partnership

how many unlimited partners do you need in a partnership

at least one

who hires managers

board of directors

a carefully constructed guide for person starting business

business plan

formal doc of what business will do

business plan

rules and regulations of a corporation

bylaws

permission to turn into corporation

charter

a corporation whose stock is owned by relative few people is called a

closed corporation

a business entity or artificial being with most of the legal rights of a person

corporation

a charter is required

corporation

a distribution of earnings to the stockholders of a corporation

dividend

a corporation incorporated in Texas doing business in NY is known in TEXAS as a

domestic corporation

Manju asks for advice and wants easy start and operate with hope of succeeding. Which business

franchise

a license to operate an individually owned business as though part of chain of outlets or stores

franchise

a person or organization purchasing a franchise

franchisee

the actual granting of a franchise

franchising

an individual or organization granting a franchise

franchisor

who is responsible for debts in partnership

general partner

businesses such as flower shops, bed and breakfasts, and automobile repair are good candidates for entrepreneurs because they

have a relatively low initial investment

how long corporation lasts

indefinitely

what is entrepreneur in corporation

intrapeneur

a person who invests only money in a partnership

limited partner

coming together of two companies

merger

what is the primary reason that so many new businesses fall

mismanagement

does a partnership contract need to be in writing

no

who manages the day-to-day business activities of a corporation

officers (managers)

volunteers for SCORE are

retired businesspeople

who owns corporation

shareholders

Shonta thinks she can get all the money she needs from a bank. What would you tell her

she should consider alternative sources of financing because banks provide only about a fourth of total capital to small businesses

a business that is independently owned and operated for profit and not dominant

small business

group of senior and graduate students who provide management to small businesses

small business institutes (SBIs)

business terminates at the death of the owner

sole proprietorship

if you want complete control, you should start a

sole proprietorship

oldest and most common

sole proprietorship

owner has unlimited liability

sole proprietorship

simplest to establish

sole proprietorship

simplest type of organization to form

sole proprietorship

what business terminates at death of owner

sole proprietorship

taxed on individual rates

sole proprietorship, partnership

the board of directors is directly responsible to...

stockholders

who elects board of directors

stockholders

a temporary association of individuals or firms organized to perform a specific task that requires a large amount of capital

syndicate

when two business firms need large sums of money to finance a project, they're likely to establish a

syndicate

the fact that insulin and power steering both originated with individual investors and small companies is testimony to the power of small businesses as providers of

technical innovation

an offer to purchase the stock of a firm targeted for acquisitions

tender offer

an individual's desire to create a new business is referred to as

the entrepreneurial spirit

what is a common mistake that small-business owners make when their businesses start growing

they over-expand without proper planning