sutfy temers
Aaron Medford has invested $600 in the corporate stock of a manufacturer of offshore oil drilling equipment. If the company goes bankrupt, the most Medford could lose would be:
$600
Jayson Tully is contemplating the purchase of a Popeye's Chicken franchise. Tully has made a list of the disadvantages that he assumes he will face as a new business owner. Which of the following is actually an advantage?
Assistance in building plans
Double taxation is a distinct advantage that corporations have over other forms of ownership T/F
False
A _________ offers the same liability protection as a corporation but may be taxed as either a partnership or a corporation
Limited liability company
Stewed Tomatoes was an "all-girl power-pop trio." Its three members realized that many musicians feel stifled when making music in a sterile studio environment while the clock ticked away expensive hours, so the three girl band members created Materville Studios, a multimedia production house and recording studio in downtown Chicago. They share work responsibilities and profits equally. Materville Studios is a(n):
Partnership
A type of business entity that provides liability protection but is taxed like a partnership is a
S corporation
Before selling stock to the public, a corporation must register with the:
Securities and Exchange Commission
Corporations face many more government restrictions and regulations than sole, and partnerships T/F
True
The corporations board of directors elects the corporate officers T/F
True
Bob Nichol and Martha Bohner own and operate a small company that bakes and sells Thunder Muffins, gigantic muffins full of blueberries, blackberries, or raspberries. They sell the muffins at a local farm that is open to the public on weekends. Since they operate the business as a partnership, they should:
agree to share the business's profits and loses
Which of the following describes a disadvantage associated with a corporation
all of the aboce
which of the following is a disadvantage of sole proprietor ownership
difficulty in raising capital
A corporation
does not have a size limitation
An S corporation
does not make the owners of the corporation personally liable for its debts
Double taxation in a corporation means
earnings of the corporation and dividends of the shareholders both are taxed
who owns a corporation
everyone who owns a share of stock in the corporation
the purchaser of a franchise is called the
franchisee
The headquarters, seller, and supplier of the service or method of operation of a franchise is called the
franchisor
When Addison Wilcox buys an H&R Block franchise, he becomes a franchisee. T/F
true
A term that means that business damages and/or debts can also be attached to the personal assets of the owners is _________ liability
unlimited
Which of the following is an example of a disadvantage associated with a partnership
unlimited liability
Sole proprietorship
have unlimited laibility
Paul Hyatt owns and operates DeepClean, a Florida-based company that cleans up mold and mildew in homes and businesses. As the sole proprietor of the business, he has unlimited liability, which means:
he is fully liable for all business debts
The franchisor generally does NOT provide the franchisee with:
help in employee selection
The fact that a corporation has limited liability means:
owners' liabilities are limited to the amount invested
Of all forms of business ownership, corporations account for the largest share of both:
sales and profits
A corporations board of directors
sets major corporate goals and policies
Which type of business organization experiences the least government regulation
sole
The form of business ownership that is easiest to dissolve is the
sole propietoryship
The most common form of business organization is the
sole proprietorship
Toyna thomas
sole proprietorship
the form of business ownership that has the most difficulty in raising capital is the
sole proprietorship
the c corporation is another term for
the conventional form of corporation
