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a significant advantage of a sole proprietorship compared to other business forms
Simplicity in decision-making and management
In a ____________, the owner has unlimited personal liability for the business's debts.
sole proprietorship
A limited liability company (LLC) can have______ number of members.
unlimited
A sole proprietorship can have _____________unrelated individuals as owners.
one
In a limited liability partnership (LLP), which partners have limited liability for the partnership's debts?
ALL - General and Limited
In a manager-managed LLC,_______________ have direct authority over the day-to-day operations of the business.
managers, not members
One of the benefits of a limited liability company (LLC) is that it provides limited liability for all members, similar to_______________________.
a corporation
________________is a separate legal entity from its owners (shareholders).
A corporation
Two companies plan to combine their business operations. The companies plan to establish a joint holding company that will consolidate and own the two existing businesses. This is an example of a(n)
merger
What is the main purpose of the Securities Act of 1933?
To require full disclosure of information for new securities offerings
In a limited partnership, ____________________ DO NOT have limited personal liability for the partnership's debts.
general partners
Who makes the final decision to approve the merger?
shareholders
Let others know of limited liability
A _______ is subject to insider trading restrictions even if they did not receive the information while they were employed by the business.
tippee
The Federal Trade Commission requires franchisors to provide certain information to potential franchisees prior to entering into a franchise arrangement. This document is known as the
Franchise Disclosure Document
Corporations have______________ and can continue to exist even if ownership changes.
perpetual existence
The __________________________ was enacted in response to corporate accounting scandals and aims to improve corporate governance and financial reporting.
Sarbanes-Oxley Act of 2002
Where competitors agree to set prices together, is considered a per se violation of antitrust laws.
Price fixing
Antitrust laws apply to______ corporations and also impacts _______ businesses.
large small
Which legal doctrine is used to determine whether a business practice that is not illegal by its own nature restrains trade and violates antitrust laws?
Rule of Reason
What is not a primary consideration for the corporate governance strategy of a business?
profitability
Possession of monopoly power and misuse of that power through monopolistic acts, is a requirement to establish monopolization under this act.
Sherman Act
What is the main objective of antitrust laws?
To promote competition and prevent monopolistic behavior
Which of the following practices may be analyzed under the Rule of Reason rather than condemned per se under antitrust laws
Exchange of information between competitors not related to pricing
Agreements or practices that restrain competition between rival firms operating at the same level of the production or distribution process
Horizontal Restraint of Trade