Sole Proprietorships
Partnerships
Corporations
Special Types of Businesses
Mergers
100
True or False: Sole Proprietorships are the simplest form of business ownership.
True
100
A person who assumes full or shared responsibility for operating a business
General Partner
100
True or False: A corporation is an artificial person created by law with most of the legal rights of a real person.
True
100
What is a corporation that is taxed as if it were a partnership (income taxed as personal income of stockholders)
S-corporation
100
What is a situation in which the management and board of directors of the firm targeted for acquisition disapprove of the merger called?
Hostile Takeover
200
True or False: Sole Proprietorships are the least common type of business ownership
False: They are the most common.
200
True or False: Partnerships are a less common form of ownership than sole proprietorship but more common than a corporation.
False- Partnerships are more common than both sole proprietorship and corporations
200
What are shares of ownership in a company called.
Stock
200
True or False: Not-for-profit Corporations are tax exempt
True: if they meet IRS guidelines
200
What is a technique used to gather enough stockholder votes to control a targeted company?
Proxy Fight
300
A legal concept that holds a business owner personally responsible for all the debts of the business
Unlimited Liability
300
Is there a legal limit to the amount of partners a partnership can have? How many do most partnerships have?
no; 2
300
What is an alien corporation?
A corporation chartered by a foreign government and conducting business in the United States
300
What are agreements between two or more groups to form a business entity in order to achieve a specific goal or to operate for a specific period of time called.
Joint Ventures
300
What is a conglomerate merger?
A merger between firms in completely different industries.
400
Name 2 Disadvantages of a Sole Proprietorship
Unlimited liability- Lack of continuity- Lack of money- Limited management skills- Difficulty in hiring employees-
400
Name 2 advantages to partnerships.
Ease of start-up- Availability of capital and credit- Personal interest- Combined business skills and knowledge- Retention of profits- No special taxes-
400
The top governing body of a corporation, the members of which are elected by the stockholders
Board of Directors
400
True or False: Syndicates are permanent associations of individuals or firms organized to perform a specific task that requires a large amount of capital
False: Syndicates are temporary
400
Name one prediction experts have for the future of mergers.
1.Mergers after the economic crisis will be the result of cash-rich companies looking to enhance their position in the marketplace- 2. There will be more mergers involving companies or investors from other countries- 3. Future mergers and acquisitions will be driven by solid business logic and the desire to compete internationally
500
List 3 advantages of a sole proprietorship.
Ease of start-up and closure- Pride of ownership- Retention of all profits- No special taxes- Flexibility of being your own boss-
500
A business partnership that is owned and managed like a corporation but taxed like a partnership
Master Limited Partnership (MLP)
500
What is the difference between an open corporation and a closed one.
Stock of open corporations can be sold to anyone while closed corporations are owned by relatively few people and its stock cannot be sold to the public.
500
What is 1 Difference between LLC's and S-corporations
LLCs not restricted to 100 stockholders- LLCs have fewer restrictions on who can be a stockholder
500
What is the difference between a horizontal and vertical merger?
Horizontal mergers are mergers between firms that make and sell similar products. Vertical mergers are mergers between firms that operate at different but related levels of production and marketing a product.
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