Economic chapter 7 Review
Subchapter S corporation
A business with fewer than 35 shareholders can incorporate as a(n)
True
A corporation is more likely to obtain low-interest loans than a partnership
False
A cosigner is someone to whom a debt is owed
True
A limited partner can lose only what he originally invested in a company
False
A subchapter S corporation must have fewer than twenty five shareholders
Impersonality
According to the text, what disadvantage often results from corporations' great size?
An inability to respond quickly to the market
According to the textbook, corporations' organizational structures can sometimes lead to accusations of?
True
Around one-fourth of all new businesses fail within their first year
True
Corporations can usually get better loans than partnerships
True
Corporations' great size can make workers feel unimportant
True
Corporations' organizational structure can cause slow responses to the market
False
Historically, sole proprietorship have the shortest lifespan of the three business types
Individuality and immortality
In the eyes of the law, a corporation possesses which two important qualities?
False
Legally, partnerships always require a written contract
False
Limited liability companies are ruled by a board of directors
Retain competent employees
Many law and accounting firms use the partnership model because of its ability to?
True
Partnership have a definite advantage over sole proprietorship in finding financial sources.
One-fourth
Suppose you buy 70,000 shares of a particular corporation stock. If the company has issued a total of 280,000 shares, how much of the company do you now own?
False
The greatest weakness of the partnership and the sole proprietorship is their limited management skills
False
The most popular business model in the United States today is the partnership
The sole proprietorship
The most popular business model in the United States today is?
Proverbs
What book of the Bible gives much advice about personal financial practices?
Unlimited financial liability
What great risk balances out the many advantages of both the sole proprietorship and partnership models
Information
What important business factor can sole proprietorship protect better than corporations can?
Limited personal liability
What is the chief advantage of incorporating a company?
Greater financial resources
What is the primary advantage of partnership over sole proprietorship?
Sole proprietorship
Which business type gives its owner(s) the most freedom?
What is the limit of each partner's liability?
Which of the following is not a question that a general partnership contract must answer?
No more than fifty shareholders
Which of the following is not an accurate criterion for an LLC?
Do unto others as you would have them do unto you.
Which statement best summaries J.C Penney's business philosophy