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