true or false econ chapter 8
If a corporation goes out of business, common stockholders get their investment back before preferred stockholders do
False
Partnerships are the most numerous form of business organization in the United States
False
Unlimited liability is one of the main advantages of a sole proprietorship
False
Corporations have all the rights of an individual, according to the law
True
The easiest type of business to start is a sole proprietorship
True
United Airlines buying Continental Airlines would be an example of a vertical merger.
false
A bond is a certificate issued by a corporation promising to repay the amount it has borrowed plus interest at a specified time in the future
true
A company paid health plan would be an example of a fringe benefit
true
A conglomerate is a business organization merging more than three companies that make unrelated products into one company.
true
A horizontal merger is the joining of two or more firms competing in the same market with the same good or service.
true
A nonprofit organization like the YMCA enjoys limited liability.
true
A partnership is a business organization owned by two or more individuals
true
Any establishment formed to carry on a commercial enterprise is a business organization
true
Business debts can ruin a sole proprietor's personal fiances.
true
Corporations are regarded as separate legal entities from their owners.
true
If you buy 100 shares of Verizon you are an owner of Verizon.
true
Liability is the legal obligation to pay debts.
true
Limited life is a disadvantage of a sole proprietorship.
true
McDonald's is an example of a franchiser.
true
Most large businesses are corporations
true
Stockholders pay personal income taxes on the money they receive from dividends.
true
The owner of a bond owns a portion of the corporation that issued it.
false
A nonprofit organization like Northwest Assistance Ministries (NAM) has limited life.
false
All multinational corporations are conglomerates.
false
Corporate bonds pay dividends.
false
Corporations must liquidate after 100 years of existence.
false
Dividends represent a portion of corporate profits.
false
Hard work always assures that a business will be successful.
false
If a company must liquidate, preferred stockholders are first in line to receive any money from the sale of assets of the company
false
If a sole proprietorship fails, the owner of the business can close the business with no payments to anyone
false
Preferred stockholders have the right to vote for nominees to the board of directors of corporations.
false
Publicly held corporations sell stock to the Securities and Exchange Commission.
false
Stockholders must pay personal income taxes on the money they receive whenever they sell their shares.
false
The dividend that a common stockholder receives is fixed.
false
The federal government issues a company's certificate of incorporation.
false
The most common form of business organization is the corporation.
false
