Intro to Business - Chapter 6

Not-for-profit organizations must meet specific guidelines in order to obtain tax-exempt status. These guidelines are structured by the: A. Internal Revenue Service B. Chamber of Commerce C. U.S. Bureau of the Census D. Board of Directors

A. Internal Revenue Service

The purchase of one corporation by another is referred to as a: A. Merger B. Partnership C. Hostile takeover D. Cooperative

A. Merger

The form of business organization most heavily regulated by the government is the: A. Sole proprietorship B. Corporation C. Partnership D. Joint venture

B. Corporation

Which form of business ownership is a legal entity that is entirely separate from the parties that own it? A. Limited partnership B. Corporation C. Partnership D. Sole proprietorship

B. Corporation

Which of the following is a good reason to form a Limited Liability Corporation (LLC)? A.To enable the hiring of both wage and salaried employees B. To mitigate the risk for owners to lose personal assets C. To keep business formation as simple as possible D. To prepare for a public offering of shares of stock

B. To mitigate the risk for owners to lose personal assets

Which of the following forms of business ownership limits liability for its owners? A. Sole proprietorship B. Partnership C. Cooperative D. Corporation

C. Corporation

A corporation organized to provide a social, educational, religious, or other nonbusiness service is known as a(n): A. Merger B. Authority C. Not-for-profit corporation D. Quasi-government corporation

C. Not-for-profit corporation

Habitat for Humanity and Girl Scouts are both examples of: A. Cooperatives B. Not-for-profit corporations C. Limited-liability corporations D. Cooperatives

Not-for-profit corporations

Conditions for settling disputes, division of income (or loss), and how an owner's interest in the company can be sold are typically contained in what? A. Income statement B. Shareholder agreement C. Mission statement D. Partnership agreement

Partnership agreement

Jasmine has always been interested in starting a small business which would allow her to have total control and the potential to earn and keep the business' profits. Which form of ownership would best fit Jasmine's needs? A. Limited Partnership B. Sole Proprietorship C. Partnership D. Corporation

Sole Proprietorship