BA test 3

Sole Proprietorship

A business owned by one person, and are the most common form of business organization in the United States.

A corporation

Any number of shareholders, and its a state chartered legal entity with authority to act and have liability separate from its owners

What is required to start a partnership?

Articles of partnership

S corporation

Up to a 100 shareholders, and is a form of business ownership that looks like a corporation but is taxed as though it were a partnership with restrictions on the number of shareholders

A partnership

a business owned by two or more people

General Partnership

a partnership that involves a complete sharing in both the management and the unlimited liability of the debts of the business.

A legal document that the state issues to a company based on information the company provides in the articles of incorporation is called a

corporate charter

A key disadvantage of the partnership form of business is ______.

friction between partners

A merger of two firms that sell similar products to the same customers is a(n) ______.

horizontal merger

Equity Theory

how much people are willing to contribute to an organization depends on their assessment of the fairness, or equity, of the rewards they will receive in exchange

Stockholders' liability for losses only up to the amount they invest is called ______ liability.

limited

This type of corporation is owned and operated by the federal, state, or local government.

quasi-public corporation

What three items are included in the staffing function of management?

-Compensation and benefits -Motivation and training -Recruiting and hiring

Disadvantages of Sole Proprietorship

-lack of continuity - limited sources of funds. - has unlimited liability