fin 240 kaplowitz worksheet 38.3: special business forms
business trust
A business form created by a written trust agreement that sets forth the interests of the beneficiaries and the obligations and powers of the trustee(s).
joint stock company
A business form similar to a corporation in some respects, having transferable shares of stock, management by directors and officers, and/or perpetual existence, but otherwise resembling a partnership.
cooperative
An association organized to provide an economic service, without profit, to its members. It can take the form of a corporation or a partnership.
syndicate
An investment group that undertakes to finance a particular project, which may be organized as a corporation or as a general or limited partnership.
joint venture
An organization created by two or more persons in contemplation of a limited activity or a single transaction, and similar to a partnership in many respects.
A joint stock company has many features of a corporation. Which of the following is NOT one of the ways in which a joint stock company is like a corporation?
its shareholders have personal liability
Which of the following is a true hybrid of a partnership and a corporation?
joint stock company
A major difference between a joint venture and a partnership is that:
a joint venture is a one-time association, whereas a partnership is ongoing
_____ is formed to control the market and thereby enable members to sell their goods at higher prices.
a seller-marketing cooperative
The Big R is a cooperative that has several outlets in the Simi Valley area. Its stores sell farm and ranch supplies. It was formed to obtain quantity discounts and pass them along to its members. Big R is a type of _____.
consumer-purchasing cooperative
If a group of people form a nonprofit membership organization to buy materials for their activities at a discount, they have probably formed a _____.
cooperative
A cooperative must be incorporated in order to be recognized.
false
A joint venture is generally treated like a corporation for tax purposes.
false
Shari gets together with a group of her friends to pool their funds to buy a house, fix it up, and rent it out. This is a joint venture arrangement but also could be known as a _____.
syndicate
Generally, an incorporated cooperative distributes dividends, or profits, to its owners on the basis of _____.
the owners' transactions with the cooperative
A syndicate may be organized as a corporation or as a general or limited partnership.
true
For the most part, special business forms are hybrid organizations, that is, they combine features of other organizational forms, such as partnerships and corporations.
true