Business Test prt. 7

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

Of all forms of business ownership, corporations account for the largest share of both:

sales and profits

The first step to incorporating a company is to:

select company's name

The form of business ownership that is easiest to dissolve is the:

sole proprietorship

IBM purchased MRO Software Inc. for $740 million. MRO was a niche provider of software and services to help customers including nuclear power plants and oil companies. IBM, plans to fold MRO into its software unit. This is an example of a(n):

acquisition

Which of the following statements about limited liability companies (LLCs) is true?

all of statements true about LLCs

Suzanne Pogell wanted to learn to sail, but she could find no one to teach her because men were the ones who sailed, and women were their crew. She finally did convince someone to teach her to sail, and after mastering sailing, she started an all-woman sailing school called Womanship as a sole proprietorship. When she dies, the:

business dies with her

There are over 1,100 Corner Stores that market candy. When Valero Energy Corp. purchased the chain of retail stores, it was an example of a _____ merger.

conglomerate

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 corp and divedends are both taxed

____________ A corporate takeover financed by large amounts of borrowed money

leveraged buyout

The combination of two companies that join to form one company is called a:

merger

The two types of cooperatives are:

buyer and seller

Which of the following provides the legal and managerial guidelines for operating the firm?

bylaws

How does the current boom in mergers and acquisitions differ from ones in earlier years?

there is a greater number of us and foreign companies making cross-border acquisitions

Why do most large companies have outside directors on their boards?

to bring a fresh view to all of corps activities

when linda mcAnem began stirya, a new york-based computer services company, she ran it as a sole proprietorship. As a sole proprietor, McAnem

found the business to become to be easy and inexpensive to form

Croutakie seemed like a great idea. Chef Leo Nyami and Sara Rice decided to take advantage of the popularity of shitake mushrooms and create some shitake mushrooms products that could be sold to restaurant patrons and other gourmets through their new company. Nyami and Rice have recently abandoned their business because they could not pay its outstanding business debts. Since Nyami and Rice are both liable for the debts, their business was a(n):

general partnership

The growing popularity of bread machines has become a new business opportunity for Shelly Clemins and Jan Schoenbarr. The women make and sell bread machine covers and fabric gift bags to hold bread loaves made in the machines. the women share the responsibilities of running the business (called bread and Butter) as well as its profits equally. Bread and Butter would be an example of a(n):

general partnership

A _____ is when two or more companies form a special entity to undertake a specific project, usually for a specific period of time.

joint venture