Business Organization Ch. 8

Which of the following is an example of a merger?

One company combines with another company that supplies it with raw materials.

In a limited liability partnership, all partners

are limited from personal liability in certain situations.

The most important decisions in a corporation are made by the

board of directors.

A merger that combines more than three businesses that make unrelated products is called a

conglomerate.

Which type of cooperative sells merchandise to its members at reduced prices?

consumer

XWhich is NOT a type of partnership?

cooperative

A corporation can offer as many shares of stock as are allowed by the

corporate charter.

Which type of business organization has shareholders?

corporation

Most large businesses are

corporations.

Liability is the

legal obligation to pay debts.

Which of the following is an advantage of a sole proprietorship?

not highly regulated by the government

In a limited partnership,

only one partner is required to be general partner.

Almost all non-profit organizations

provide services rather than goods.

A disadvantage of a franchise is that the franchise owner must

sacrifice some freedom in return for the parent company's guidance.

In return for a fee to a franchiser, a business owner receives the right to

sell the franchiser's goods and services.

One of the ways a corporation can raise money is by

selling stock on the stock market.

9. The most common form of business organization is the

sole proprietorship.

Which of the following is NOT a government requirement when starting a sole proprietorship?

to give clients 90 days notice prior to shutting down operations

A partnership is a business organization owned by

two or more individuals.

Museums, public schools, and YMCAs are all

exempt from paying income taxes.