Chapter 6

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

A single owner actively manages the company

Which of the following is one of the reasons why many people prefer a sole proprietorship?

Pride of ownership

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

A limited partnership

An owner of a corporation is called a _____

Stockholder

When people use the term "corporation" without specifying which type, they are generally referring to a(n) _______

C corporation

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(n) ______ cannot distribute dividends to its members

Not-for-profit corporation

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

Target firm