Sole Proprietorship
Partnerships (I)
Partnerships (II)
Corporations (I)
Corporations (II)
100
Two examples of the advantages of sole proprietorship would include - (Any two correct responses will be awarded points)
What are of 1) ease of start-up and closure, 2) pride of ownership, 3) retention of all profits, 4) no special taxes & 5) flexibility of being your own boss?
100
A partnerships formal definition is -
What is "a voluntary association of two or more persons to act as co-owners of a business for profit"?
100
Name two advantages of partnerships- (Any two correct responses will be awarded points)
What are 1) Ease of Start-Up, 2) Availability of Capital and Credit, 3) Personal Interest, 4) Combined Business Skills and Knowledge, 5) Retention of Profits, & 6) No Special Taxes?
100
An artificial person created by law with most of the legal of a real person, including the rights to start and operate a business to buy or sell property, to borrow money, to sue or be sued, and to enter into binding contracts -
What is a corporation? stockholder - a person who owns a corporation's stock.
100
A distribution of earnings to the stockholders of a corporation -
What is dividend?
200
Three types of businesses that are commonly sole proprietorships would include -
What are retail, service & agriculture?
200
There are approximately 3 million partnerships in the United States. Partnerships are much _______ common than sole proprietorships or corporations. hint: more or less
What is less? (Partnerships represent 9% of all American Businesses, there are 3 million in the U.S. and they account for 4.7 trillion in sales.)
200
The main advantages of partnership over a sole proprietorship are -
What are availability of capital and credit and the combined business skills and knowledge of the partners?
200
This document contains 1) the firm's name & address, 2) the incorporators' names and addresses, 3) the purpose of the organization, 4) the maximum amount of stock and types of stock to be issued, 5) the rights and privileges of stockholders & 6) the length of time the corporation is to exist.
What is articles of incorporation (corporate charter)?
200
A corporation chartered by a foreign government and conducting business in the US -
What is an alien corporation?
300
The owner of a sole proprietorship is referred to as a -
What is a sole proprietor?
300
A person who assumes full or shared responsibility for operating the partnership -
What is general partner?
300
Two disadvantages of partnerships include - (Any two correct responses will be awarded points)
What are 1) Unlimited Liability, 2) Management Disagreements, 3) Lack of Continuity, & 4) Frozen Investment?
300
A corporation whose stock is owned by relatively few and is not sold to the general public -
What is a closed corporation? open corporation - a corporation whose stock can be bought and sold by any individual.
300
A legal form listing issues to be decided at a stockholder's meeting and enabling stockholders to transfer their voting rights to some other individual or individuals -
What is a proxy?
400
The individual with a promising idea that chooses the sole proprietorship form of ownership is referred to as this -
What is an entrepreneur?
400
A person who invests money in a business, but has no management responsibility or liability for losses beyond his or her investment in the partnership -
What is a limited partner?
400
A type of partnership in which a partner may have limited-liability protection from legal action resulting from the malpractice or negligence of the other partners -
What is a Limited Liability Partnership? (LLP)
400
A corporation in the state in which it is incorporated -
What is a domestic corporation? foreign corporation - a corporation in any state in which it does business except the one in which it is incorporated.
400
The top governing body of a corporation, the members of which are elected by the stockholders -
Who are the board of directors?
500
Three disadvantages of sole proprietorships would include - (Any three correct responses will be awarded points)
What are 1) unlimited liability, 2) lack of continuity, 3) lack of money, 4) limited management skills & 5) difficulty in hiring employees?
500
An agreement listing and explaining the terms of the partnership is referred to as -
What is Articles of Partnership?
500
The term "Frozen Investment", in regard to partnerships, refers to this particular issue.
What is the difficulty of getting investment money out of a partnership? (The partnership agreement should include some procedure for buying out an exiting partner.)
500
Stock owned by individuals or firms who usually do not have voting rights, but whose claims on dividends are paid before those of common-stockholders -
What is preferred stock? common stock - stock owned by individuals or firms who may vote on corporate matters but whose claims on profits and assets are subordinate to the claims of others.
500
Two advantages of corporations & two disadvantages of corporations - (Any two correct responses, for each, will be awarded points)
What is (advantages) - 1) limited liability, 2) ease of raising capital, 3) ease of transfer of ownership, 4) perpetual life & 5) specialized management? What is (disadvantages) - 1) difficulty and expense of formation, 2) government regulation and increased paperwork, 3) conflict within the corporation, 4) double taxation & 5) lack of secrecy?
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