5 Business management

A typical partnership agreement includes details about:

how partners will settle disagreements.

Which of the following statements is true about listening?

For most people, listening is much slower than thinking.

Common stock represents the basic ownership interest in a corporation.

true

Franchising is used by companies to move into foreign markets.

true

The Internal Revenue Service classifies each limited liability company (LLC) based on the tax treatment the company selects.

true

A large film production company merges with a popular sound processing studio, resulting in the formation of a new company out of the two previously independent firms. This is most likely an example of a _____.

vertical merger

Which of the following statements is true of a typical franchise agreement?

It requires the franchisee to pay an initial fee.

Which of the following is an advantage of an S corporation?

Its stockholders have limited liability.

Which of the following features of a sole proprietorship proves that it is a risky endeavor?

Its unlimited liability

The owners of limited liability companies (LLCs) are called members because:

LLCs are neither corporations nor partnerships.

Which of the following is a difference between limited liability companies (LLCs) and corporations?

LLCs are subject to fewer reporting requirements than corporations.

Which of the following is an advantage of a C corporation?

Shareholders have limited liability in the firm.

Which of the following communication channels should ideally be used when the content is uncontroversial and a quick response regarding relatively simple issues is required?

Texting

In the context of business presentations, to listen better one should begin speaking the moment the presenter stops talking.

True

In the context of nonverbal communication, leaning forward during a conversation is considered a sign of interest.

True

Which of the following is a disadvantage of franchising?

The franchise agreement usually requires the franchisee to follow the franchiser's procedures to the letter.

In-person presentation is a communication channel with high channel richness.

True

.As globalization gains speed, intercultural communication will become less important to business success.

false

A disadvantage of an S corporation is that it can have no more than 50 stockholders.

false

Corporations are by far the most common type of business organization in the United States.

false

Ideally, the opening of your business presentation will summarize your key points. Group of answer choices

false

Green Haven is an organization whose earnings are exempt from federal and state income taxes. Individuals who contribute money to the organization can avail the benefit of tax deduction. However, the organization is barred from distributing dividends to its members. Given this information, Green Haven is most likely a(n):

not-for-profit corporation.

A(n) _____ is a voluntary agreement under which two or more people act as co-owners of a business for profit.

partnership

A(n) _____, a type of divestiture, occurs when a company issues stock in one of its own divisions or operating units and sets it up as a separate company—complete with its own board of directors and corporate officers.

spin-off

All owners of a _____ can actively participate in management while still having limited liability.

statutory close corporation

Carla and Liang both have shares in HD&Z Corporation, a C corporation that offers limited liability to all its owners. In this context, Carla and Liang are the _____ of HD&Z Corporation.

stockholders

In the context of an acquisition, the firm that is purchased by another firm is called the _____.

target firm

One of the reasons why C corporations have an edge over sole proprietorship is:

the permanence of the business.

An advantage of franchising is the:

training and support provided by the franchiser.

Albert is the owner of a car service center. As a sole proprietor, any profit that he earns is:

treated as Albert's personal income.

A corporation can be a partner in a partnership.

true

Effective communication happens when one transmits relevant meaning to one's audience.

true

An owner of a C corporation is called a _____.

stockholder

Identify a true statement about nonverbal communication.

Paying attention to a monotone takes more concentration than most people are willing to muster.

Which of the following is a characteristic of limited liability companies (LLCs)?

They are made to pay an annual franchise tax in many states.

Which of the following statements is true of communication barriers?

They can arise in a number of different forms.

Which of the following statements is true of stockholders of corporations?

They do not have to be individuals.

A _____ is a form of business ownership in which the business is considered a legal entity that is separate and distinct from its owners.

corporation

In the context of active listening, one of the dos for better listening is the use of _____.

nonverbal communication

In the context of communication, taking notes helps one concentrate and listen better.

False

A sole proprietorship is a form of business ownership in which:

a single owner actively manages the company.

A _____ is a type of franchising arrangement in which the franchiser makes a product and licenses the franchisee to sell it.

distributorship

To decide the vocabulary and the complexity of a message, one must know the _____ of the audience.

education level

In the context of an acquisition, when the acquiring firm buys the target firm despite the opposition of the target's board and top management, the result is called a _____.

hostile takeover

The benefits of a general partnership include its _____.

ability to pool financial resources

As globalization gains speed, intercultural communication will:

become increasingly pivotal to long-term business success.

When drafting an email intended for a recipient who is likely to feel positive about it, you should:

begin the email with your bottom line.

A business email should have a compelling subject line.

true

Brian has decided to supplement his job application to Wendenlt Corporation with a cover letter to the senior manager of human resources. However, he knows neither the name nor the gender of the senior manager he wishes to address. In this scenario, which of the following is the most appropriate way Brian can address the recipient formally without displaying gender bias?

"Dear Senior Manager of Human Resources"

Which of the following is a difference between a C corporation and an S corporation?

A C corporation is double taxed, whereas an S corporation is taxed as a partnership.

Which of the following statements is true of a franchiser-franchisee relationship?

A franchiser limits the franchisee's territory from expanding into other areas.

Which of the following statements avoids gender bias?

A manager who does not lead by example is a poor manager.

In the context of communication channels, which of the following is a similarity between memos and email?

Both can be used when your content is uncontroversial

Which of the following is a similarity between a general partner and a limited partner in a limited partnership?

Both contribute financially to the company.

Which of the following is a similarity between a sole proprietorship and a partnership?

Both their earnings are untouched by the Internal Revenue Service.

Several prominent owners of a uranium mining company pass away within a period of two years. However, the company continues to operate as it remains financially viable and a majority of its stockholders wish for the continuation of the business. In this scenario, the uranium mining company is an example of a _____.

C corporation

In the context of the various roles employees take up in an organization, who among the following are least likely to spend most of their time listening?

Hourly employees

Which of the following is a difference between limited partnerships and limited liability partnerships?

In limited liability partnerships, all the partners actively participate in the management of the company, whereas in limited partnerships, only the general partners actively manage the company.

Which of the following communication channels should ideally be used when you need to reach a large audience with an important message?

In-person presentation

Which of the following statements is true of the board of directors of a corporation?

It establishes the corporation's mission.

Which of the following statements is true of a limited liability company (LLC)?

It is a relatively new form of business ownership in the United States.

In the context of franchising, which of the following statements is true of a business format franchise?

It is an agreement in which franchiser grants the franchisee the right to both make and sell its good or service.

_____ is a form of communication that does not involve the use words.

Nonverbal communication

Which of the following statements follows the recommended guidelines for picking the right words for business communication?

Our team did not hit our sales goal.

Which of the following is a disadvantage associated with sole proprietorship?

Raising money to finance growth can be tough for business owners.

Which of the following statements is true of effective business communication? Group of answer choices

The speaker should seek and understand feedback from the speaker's audience.

Which of the following factors is likely to create a language barrier to communication?

The use of slang

Which of the following statements is true of communication barriers?

They are hard to change.

Which of the following statements is true of forming C corporations?

They require the adoption of corporate bylaws.

A Franchise Disclosure Document (FDD) is:

a document provided by a franchiser to the franchisee.

A(n) _____ is a combination of two firms that are in unrelated industries.

conglomerate merger

In a sole proprietorship, any debts the company incurs are:

considered to be the owner's personal liabilities.

The basic rules governing how a corporation is organized and how it conducts its business are known as _____.

corporate bylaws

A _____ refers to a partnership in which all partners can take an active role in managing the business and have unlimited liability for any claims against the firm.

general partnership

A firm considers _____ to increase size and market power within the industry.

horizontal mergers

In the context of corporate restructuring, a common objective of a horizontal merger is to:

improve efficiency by eliminating duplication of facilities and personnel.

Unlike a sole proprietorship, a corporation:

is considered to be a legal entity that is separate and distinct from its owners.

A(n) _____ is a form of business ownership that offers both restricted responsibility to its owners and flexible tax treatment.

limited liability company

Chloe and Tamara start a vintage fashion boutique. While both invest equally in the store and are entitled to equal profits, it is Tamara who looks after the day-to-day business transactions and manages the store. Chloe does not actively participate in managing the store, and her personal wealth is not at risk in case the business suffers losses. In this scenario, Chloe is a _____.

limited partner

A _____ is a partnership arrangement that includes at least one general partner and at least one limited partner.

limited partnership

In the context of nonverbal communication, fidgeting during a conversation is likely to be considered a sign of:

nervousness.

In the context of business communication, one should:

not use slang in either written or verbal communication.

A(n) _____ cannot distribute dividends to its members.

not-for-profit corporation