Module #2

Match the type of business ownership with the description that characterizes its ownership. Sole Proprietorship Partnership Corporation S Corporation one owner two or more owners any number of shareholders up to 100 shareholders

Roland wanted to earn extra income, so he assigned on with Uber as a driver. Since Roland is not considered an employee of Uber but rather an independent contractor, his new business venture would be called a ______________.

It is easier to start a sole proprietorship because _______________.

In a sole proprietorship, the possibility that competitors can obtain trade secrets is minimized because _______________.

All profits from a sole proprietorship belong exclusively to the _____________.

Match the type of business ownership with the description of how it is taxed. sole proprietorship, partnership, corporation. individual income is taxed, individual owners' income is taxed, the business and shareholders are taxed.

a key advantage of a sole proprietorship is that_______________.

______________ are businesses owned and operated by one individual, and are the most common form fo business.

Of the following forms of business ownership, which is relatively easy and inexpensive to form?

which of the following is an advantage of a sole proprietor? the business has limited sources of funds, the business can be easily dissolved, the business has a lack of continuity, the business has unlimited liability.

which form of business allows for the greatest degree of secrecy? sole proprietorship, corporation, partnership, limited liability corporation

an advantage of a sole proprietorship is that the owner ___________.

as a sole proprietor, Ellie enjoys many advantages. Which of the following is NOT one of them? Ease and cost of formation, owner gets to keep the profits, limited government regulation, unlimited liablility.

True or False: An advantage for a sole proprietor is the ability to respond quickly to competitive business conditions or to changes in the economy without anyone else's approval.

Select from the following three resources available to a sole proprietor to obtain funds. loans from a bank, money from friends and family, selling stock to investors, the business owner's own personal funds, selling bonds to investors.

The only legal condition to dissolving a sole proprietorship is that ______________.

A sole proprietor needs skills in which of the following? Directing shareholders, corporate chartering, finance, personnel management, marketing.

In a sole proprietorship, the possibility that competitors can obtain trade secrets is minimized because _______________.

In a sole proprietorship, any debts or damages incurred by the business that cannot be paid by the business are your personal debts and you must pay them. This disadvantage is known as ________________.

The term of business being dependent on the life of the business owner is referred to as ______________.

____________ have fewer financial resources since they are limited to what the owner is able to borrow.

A legal form of business with two or more owners is a ______________.

_____________ are businesses owned and operated by one individual, and are the most common form of business organization in the United States.

select the two types of partnerships: subsidiary, corporate, limited, general, complex.

True or False: Specialized professionals in fields like accounting are often hired by sole proprietors who lack knowledge in that area.

A partnership where all owners share in operating the business and in assuming unlimited liability for the business's debts is a ______________.

which form of business ownership is directly linked to the life of its owner and his or her ablility to work?

An association of two or more persons who carry on as co-owners of a business for profit is the definition of a _______________.

which legal document sets forth the basic agreement between partners?

the two major types of partnerships are _______________.

One advantage of a partnership is that _______________.

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

What are two advantages to the partnership form of ownership? Unlimited liability for all partners, special tax breaks for all partners, more financial resources are available , more skills and knowledge are available.

A disadvantage of a sole proprietorship is that ________________.

Having carefully chosen partners with different skills and knowledge can help a partnership succeed because _______________. no one person has all of the skills needed, the taxes are reduced for the general partner, it allows people to specialized in a particular area, it changes the tax structure.

Select the three items that are usually listed in the articles of partnership. authority and responsibility of each partner, how profits will be distributed, contribution of each partner, the value of each partner's retirement accounts, each partner's typical domestic spending.

Which of the following is a disadvantage of the partnership form of business? Equal division of profits, friction between general and limited partners, perpetual life of partnership, vast amount of regulatory controls.

what is required to start a partnership?

Camille and Rosa have decided to open a business together. Which of the following is true for their business? the pooled resources of the partners will make it more difficult to start the partnership, the pooled financial resources and talents of the partners will be an advantage to the business, the pooled talents of the partners means that each partner will be responsible for only her area of expertise. The pooled financial resources of the partners means that they will have limited liability.

An advantage of having one or more partners is that _______________. more financial resources are available, you vote on how profits are distributed, there are special taxes for all, more skills and knowledge are available.

All of the following are advantages of partnerships, EXCEPT ______________. partners can combine their knowledge and skills to be more successful, partnerships have fewer regulatory controls affecting their activities than corporations, partnerships are relatively easy to organize and start, partnerships have unlimited liabilities for the debts incurred by the business.

a key disadvantage of the partnership form of business is _______________.

True or False: an advantage of partnerships is that all partners are responsible for the business actions of all the other partners

True or false: there is a set formula for all partnerships to divide profits

When each general partner is liable for the debts of the firm, no matter who was responsible for causing the debt, this called a ______________ liability.

__________________ do not pay taxes when submitting the organization's tax return to the internal revenue service; the tax return simply provides information about the profitability of the organization and the distribution of profits.

select all three items that are usually listed in the articles of partnerships: authority and responsibility of each partner, contribution of each partner, the value of each partner's retirement accounts, each partner's typical domestic spending, how profits will be distributed.

corporations have all the rights and privileges listed below except: they can sue and be sued in court, they can enter into contracts, their owners have unlimited liability, they can receive, own, and transfer property

Which of following is a disadvantage of being in a partnership? All partners are responsible for the business actions of all other partners, small partnerships can react more quickly to changes in the business environment that can large partnerships and corporations, partnerships acknowledge each other's talents and skills and pooled financial resources, a partnership has fewer regulatory controls affecting its activities than does a corporation.

Having a partner may share the risk, but it also means sharing ____________ because each partner must be rewarded for their participation in the business.

based on the information in the articles of incorporation, the state issues a ___________ _____________ to the company.

How is taxation handled in partnerships?

as a legal entity _____________ have many of the rights, duties and powers of a person, such as the right to receive, own, and transfer property.

In a partner ship, why is shared business responsibility considered a disadvantage?

A _____________ is owned by just one or a few people who are closely involved in managing 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 ______________.

a ________________ corporation is one whose stock anyone may buy or sell, or trade.

__________________ do not pay taxes when submitting the organization's tax return to the internal revenue service; the tax return simply provides information about the profitability of the organization and the distribution of profits.

corporations have all the rights and privileges listed below EXCEPT ______________.

A private corporation that needs more money to expand or to take advantage of opportunities may have to obtain financing by "going public" through an ______________ that is, becoming a public corporation by selling stock so that it can be traded in public markets.

a ____________ corporation is owned by just one or a few people who are closely involved in managing the business.

having a partner may share the risk, but also means sharing ______________, because each partner must be rewarded for the participation in the business.

___________________ corporations are owned and operated by the federal, state, or local government.

This is a corporation whose stock anyone may buy, sell or trade.

_________________ are legally liable for the mismanagement of the firm or for any misuse of funds.

Of the two types of stock, owners of ______________ stock receive preferential treatment regarding dividends.

The selling of a corporation's stock on public markets for the first time is known as __________________.

The right to vote for the board of directors is given to ______________ stockholders.

A _________________ is owned by just one or a few people who are closely involved in managing the business.

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

Corporations issue shares of ______________ to shareholders and they can sell or trade them to other people without causing the termination of the corporation.

How are the members of a board of directors selected?

This is a special type of stock whose owners, though not generally having a say in running the company, have a claim to profits before other stockholders do.

Although owners of ______________ stock do not get any preferential treatment with regard to dividends, they do get some say in the operation of the corporation.

When a corporation is separate from its owners and does not terminate with the death of one owner, the corporation has ________________.

Which of the following is an advantage of the corporate from of business ownership?

Which of the following is considered an advantage of corporations?

When the corporation pays a tax on its profits and individual stockholders each pay tax on dividends distributed by the corporation, it is called __________________.

A ________________ is/are elected by the stockholders to oversee the general operation of the corporation and set its long-range objectives.

The startup costs of filing for incorporation are high because ______________.

Of the two types of stock, owners of _____________ stock receive preferential treatment regarding dividends

perpetual ______________ for a corporation means that the death of one owner does not end the corporation.

Public operations must file reports with _____________ the government regulatory agency that regulates securities such as stocks and bonds.

_____________ liability means that the owners of the business are responsible for its losses only up to the amount they invest.

the situation known as "double taxation" only occurs with which form of business ownership?

A partnership established for a specific project or for a limited time is called _____________.

The formation of a ___________ can be costly. A charter must be obtained, and this usually requires the services of an attorney and payment of legal fees.

_______________ must make information available to their owners, usually through an annual report to shareholders.

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 is ________________.

Which of the following is an advantage of the corporate form of business ownership?

A limited liability company is taxed like a _____________.

A business owned and controlled through pooled resources by the people who use it is an _______________.

The result of two firms (usually comparisons) combining to form one company is called a _____________.

An ______________ is where one company purchases the property and obligations of another.

A partnership established for a specific project or for a limited time is called ___________________.

A merger of two firms that sell similar products to the same customers is a ________________________.

Owners in an LLC have ____________ liability.

match the type of merger with its correct definition: horizontal merger, vertical merger, conglomerate merger. a merger between firms that make and sell similar products to the same customers, a merger between companies operating at different but related levels of an industry, a merger between two firms in unrelated industries.

As an entity, cooperatives are not set up to make ______________.

The joining of two companies involved in different but related levels of an industry is called a _____________.

If a chemical company merged with a textile manufacturer, it would be an example of a _______________.

The company (or individual) that wants to acquire or take over another company is known as a ________________ ______________.

The three types of mergers are differentiated by analyzing whether the companies merging are in the same, related, or different ______________.

In a leveraged buyout, employees, managers, or investors finance the purchase of the company by ________________.

A business owned and controlled through pooled resources by the people who use it is a ________________.

A _______________ is an attempt by employees, management, or a group investors to purchase an organization primarily through borrowing.

In a leveraged buyout, employees, managers, or investors finance the purchase of the company by _____________.

Which is a means of informally expressing an organization's culture? ceremonies codes of ethics mission statement manuals employee dress codes

An organization's ________ refers to its shared values, beliefs, traditions, philosophies, rules, and role models for behavior.

The managers of Trendy, a large department store, decide to have a sale. The store manager works with the advertising department to make the public aware of the sale, with department managers to schedule enough salespeople to handle the increased customer traffic, and with merchandise buyers to ensure that enough merchandise is available to meet expected consumer demand. What does this scenario say about organizational structure?

Grayson owns a local smoothie store. His business started small, but over the years, word of mouth has spread, bringing more people in to try his delicious homemade smoothies. Since business is booming, Grayson decides to expand his business and open three additional stores in surrounding towns. What does growth like this require in terms of structure?

What is a primary function of an organizational chart?

Small businesses commonly employ ________ departmentalization.

If the type of departmentalization used by an organization tends to emphasize departmental units rather than the organization as a whole and decision making is slow, then these would be weaknesses indicative of ________ departmentalization.

What is an advantage of job specialization?

Multinational corporations often use a geographical approach to departmentalization because

Ski and Surf, a large distributor of skiing and diving equipment in the United States, is organized into four business units: (1) Mountain States Ski, (2) West Coast Surf, (3) South Central States, and (4) Central States. What two types of departmentalization are illustrated in this example?

Pierce Products has a computer electronics division, telecommunications equipment division, and kitchen appliances division. Pierce Products uses ________ departmentalization to structure its organization.

A narrow span of management would typically be found in?

Decentralization works best in companies

Which concept deals with giving employees the power to make commitments and use resources to accomplish the assigned tasks?

In a(n) ________ organization, the decision-making authority is delegated as far down the chain of command as possible.

Comfort Food Reimagined is a new restaurant that prepares childhood favorites in new ways to appeal to adults. The restaurant's owner has empowered Bill, an employee, to create a new advertising campaign to attract customers. What does Bill need to carry out this assignment?

A disadvantage of a multidivisional structure is that it

Matrix organizational structures

An organizational structure that is based on direct lines of authority from the top executive to the lowest level of employees is called a ________ structure.

Accurate Awnings is experiencing production delays resulting in a backlog of customer orders, so the firm assembles a team to look into the issue. The team is given full authority to implement a new process for streamlining production without having to get management approval. In this scenario, the team is likely to be

After a large staffing firm reorganized and laid off 50 employees, it faced lawsuits alleging that the layoffs targeted minorities and women. The firm assembled a group to conduct a two-year study to address the allegations and provide recommendations for improving company reorganization practices. What type of group does this scenario describe?

A temporary group of employees, usually chosen for their expertise, that is responsible for bringing about a particular change is a(n)

Melvin and Darryl are both managers at a sporting goods store. Melvin is a manager in the finance department and Darryl is a lower-level manager in the shoe department. When these managers communicate, it is known as ________ communication.

Noreen is a supervisor at a fast food restaurant. Every week, she submits a progress report to Micah, the restaurant manager, to let him know how the restaurant is doing and to bring any employee performance concerns and customer feedback to her attention. What type of communication does this scenario describe?

Teresa is a manager of a real estate company. She is aware that her company has an active grapevine because she has heard her employees gossiping in the lunch room and around the office. All of the following are things she can do to use the grapevine to her advantage EXCEPT