Chapter 14 homework

Identify a true statement about the continuity of a partnership.

A change in the partners at any time results in the dissolution of the organization.

Domestic corporation Foreign corporation Alien corporation

A corporation is called so in the state in which it is incorporated. A corporation is called so in places other than the state in which it is incorporated. A corporation created under the authority of a foreign country may be called so.

Identify the disadvantages of partnership as a form of business organization. (Check all that apply.)

A partnership is dissolved any time a partner ceases to be a partner, regardless of whether the reason is withdrawal or death. Only a limited number of people can be partners for practical reasons.

In the context of an employer's tort liability from the actions of agents, identify the true statements about respondeat superior cases. (Check all that apply.)

An employer who must pay for an employee's tort under respondeat superior may legally sue the employee for reimbursement. Frolic and detour is a valid defense to the strict liability of respondeat superior.

Identify a guideline that must be followed when selecting a name for a partnership.

Any word that would imply the existence of a corporation must not be used in the name.

Publicly held organizations

Businesses whose stock is traded on a public exchange

Identify the disadvantages of the corporate form of organization. (Check all that apply.)

Corporations are subject to more governmental regulation at all levels than are other forms of business. Franchise taxes and license fees are assessed against corporations. The cost of forming and maintaining a corporation is significant.

Identify the disadvantages of the corporate form of organization. (Check all that apply.)

Corporations are subject to more governmental regulation at all levels than are other forms of business. Franchise taxes and license fees are assessed against corporations. The cost of forming and maintaining a corporation is significant.

Which of the following is true of the partners in a general partnership?

Each partner has an equal voice in the firm's affairs unless the agreement provides to the contrary.

A dissolution destroys the business of a partnership.

False

A shareholder needs to vote their shares in person at any stockholder's meeting for those votes to count.

False

An individual and a corporation cannot agree to create a business in the form of a partnership.

False

Closely held organizations

Family-operated and family-owned businesses

Which of the following is true of a corporation?

If it wishes to conduct business in states other than the state of incorporation, it must be licensed in these foreign states.

Identify the true statements about a limited liability company.

It is created through filings like those used when creating a corporation. Its owners have more flexibility than those of an S corporation.

Identify the true statements about a non-profit organization. (Check all that apply.)

It must return any profits made to the organization to be used for future operations. It is not created for the personal benefit of owners or members.

In the context of the creation of corporations, identify the true statements about a corporate name. (Check all that apply.)

It typically includes one of the following words or end with an abbreviation of them: "corporation," "company," "incorporated," "limited." It is an asset and an aspect of goodwill.

Identify the groups present in the corporate form of organization. (Check all that apply.)

Officers Shareholders Directors

identify the disadvantages of partnership as a form of business organization. (Check all that apply.)

Only a limited number of people can be partners for practical reasons. A partnership is dissolved any time a partner ceases to be a partner, regardless of whether the reason is withdrawal or death.

Identify the advantages of a partnership as a form of business organization. (Check all that apply.)

Partnerships generally are subject to less regulation than are corporations. Partnerships are not a tax-paying entity. A partnership may operate in more than one state without a license to do business.

What are the factors that should be considered when selecting the best organizational form for a particular business activity? (Check all that apply.)

The control of decisions The cost of creating the organization The continuity of the organization

In the context of the creation of a corporation, identify the information contained in the articles of incorporation. (Check all that apply.)

The proposed name of the corporation The number of authorized shares in the organization The proposed corporation's period of duration

Which of the following is true of a sole proprietorship?

The proprietorship's income subject to taxation is attributed to the proprietor.

The personal liability of the owners should be taken into account when selecting the best form of organization for one's business.

True

The formal application for a corporate charter is called the

articles of incorporation

A formal agreement explicitly stated among the parties entering into a partnership and drafted into a formal document is known as the

articles of partnership

The use of sole proprietorship as a business organization is very limited because it _____.

cannot be created by multiple owners

An issue of major importance to owners of a business organization is _____________, so much so their own egos often insist on it.

control

In the context of the different forms of business organizations, an artificial, intangible entity created under the authority of a state's law is known as a(n

corporation

A partnership is a form of business organization that _____

does not require permission from each state in which it does business

A partnership is advantageous as a form of business organization because it _____.

guarantees each partner an equal voice in management unless there is a contrary agreement

A feature of the partners in a general partnership is that they _____.

have unlimited liability for their organization's debts

A partner in a trading partnership need not have actual authority to buy and sell commodities, rather they have membershipBlank 1Blank 1 membership , Incorrect Unavailable authority to do so.

implied

A characteristic of a sole proprietor is that he or she is _____.

in total control of his or her business's goals

A corporation is created by a state issuing a charter upon the application of individuals known a

incorporators

A feature of a partnership is that it _____.

is easily formed when compared to other forms of business organizations with the exception of a sole proprietorship

A characteristic of sole proprietorship is that it _____.

is the easiest business organization to create

In the context of the factors that need to be considered when selecting the best organizational form for a business activity, the meaning of the word "continuity" becomes associated with the stability of the organization when one questions the _____.

manner in which the existence of the organization relate to its owners

A crucial issue with the continuity factor of an organization is the _____.

method by which the business organization can be dissolved

Ratification

occurs when a principal voluntarily decides to honor an agreement, which otherwise would not be binding due to an agent's lack of authority.

An agreement between two or more persons to share a common interest in a commercial endeavor and to share profits and losses is known as a(n)

partnership

A feature of a benefit corporation is that it _____.

pursues explicit, socially oriented goals

The members of the board of directors of a corporation are elected by the _____.

shareholder

creation

text text of the significant factors one should consider when selecting the best organizational form for a business activity, _____ refers to the legal steps necessary to form a particular business organization.

In the context of a corporation's liabilities, the corporate veil is said to be pierced when _____.

the corporate entity is disregarded because courts find that the corporate organization is being misused

The factor of control in a business organization concerns _____.

who is managing the organization