Chapter 5:

The _______ is most common form of business ownership.

A _____ is a form of business that is owned, and usually managed, by one person.

______ compromise about 20% of all businesses but account for about 81% of U.S. business receipts.

To many business people, one of the major attractions of a sole proprietorship is:

The _______ is usually the easiest form of business to start and end.

One of the major disadvantages of a sole proprietorship is the:

Starting a new business as a sole proprietorship:

With respect to taxes, the sole proprietorship:

A significant disadvantage of owning a sole proprietorship is the:

Any debts or damages incurred by a firm organized as a sole proprietorship are:

Although sole proprietors do not pay any special taxes, as the owner of the business you are also an employee of the business, which requires you to:

In a partnership, a(n) _______ partner (owner) actively manages the company and has unlimited liability for claims against the firm.

A partner (owner) who invests money in a business does NOT take an active role in managing the operation, and is only subject to losing the funds he/she invested.

The limited liability provided to limited partners means they are not responsible for the debts of the business beyond:

a ______ acts much like a corporation and is traded on stock exchanges, but it is taxed like a partnership with profits passing through the owners and taxed as the owners personal income.

Compared to a sole proprietorship, which of the following is considered an advantage of a general partnership?

Which of the following is an advantage of a partnership?

When entering into a new partnership, a good strategy is to:

One difference between partnerships and sole proprietorships is that partnerships:

A good reason why partners should spell out the details of their partnership in writing is:

Jamie and Maria invested all their savings in a small pizzeria they opened outside the University of Western Kentucky. They operated the business as a general partnership. After 11 months, the business went broke and Jamie and Maria were left with outstanding bills of $37,500, which was more than their initial investment in the company. Jamie and Maria can:

A state-chartered legal entity with authority to act and have liability separate from its owners.

An owner of a corporation is known as a(n):

Which of the following statements about the operation of a corporation is correct?

Which of the following is an advantage of the corporate form of business when compared to sole proprietorships and partnerships?

Which of the following is normally considered a disadvantage of the corporate form of business?

The board of directors for a corporation is elected by its:

The form of business ownership that usually requires the most detailed record keeping is the:

A major advantage of S corporations is that they:

To qualify as an S corporation, a company must:

The income generated by S corporations:

One reason limited liability companies have become so popular is that they:

Earnings of C corporation can be:

The organizational structure of a corporation permits:

Which of the following statements is the most accurate? A foreign corporation:

Compared to the C corporation, the limited liability company is an attractive form of business ownership because ________.

Double taxation means:

Trevor and Tyler own all the stock in the Double T Corporation. The stock of this corporation is not sole the general public. Trevor and Tyler own a:

Ramon lives in Mexico City and is a Mexican citizen. He has several friends in the United States who own shares in an S corporation. Ramon would like to invest in this company. Ramon:

One reason that companies participate in mergers and acquisitions is:

A ______ is two firms combining to form one country.

A(n) _______ occurs when one company buys the property and obligations of another company.

Three types of corporate mergers are:

When two companies in a completely unrelated industries agree to become one firm, the result is called:

An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing is called a(n):

If a group of stockholders or management obtain all the stock of a previously publicly traded firm for themselves, this is referred to as:

The difference between a merger and an acquisition is:

A(n) _______ is a company that has proven a business model and is willing to sell the rights to use business model to others so that they can sell the same product or service within a given territory

A person who buys the right to use a business name and sell a product within a given territory is called a:

A ______ is the share of profits or percentage of sales a franchisee pays to a franchisor.

Opening and operating a franchise in a different country:

Franchisors may send reverse royalties to franchisees who:

Marco is a franchisee with Daggies, a chain of sandwich shops. His business was doing well until several Daggies franchisees got in trouble and were forced to close their shops. Soon afterward, Marco's business deteriorated and he too was forced to close. This is an example of:

A _____ organization that is owned and controlled by the people who use it-producers, consumers, and workers with similar needs pool their resources for mutual gain.