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Ch 8 - Business Organization Flashcards | StudBud
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Ch 8 - Business Organization
Ch 8 - Business Organization
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Answers
1
Which of the following is NOT an advantage of a sole proprietorship?
ease of management
unlimited liability
no separate taxes
psychological satisfaction
2
A gov't document that gives formal permission to form a corporation:
charter
merger
conglomerate
partnership
3
Types of Businesses:
owned & operated by a single individual
partnership
sole proprietorship
franchise
corporation
4
Funding Start-Ups:
using social networking to appeal to multiple investors
venture capitalist
angel investor
incubator
crowdfunding
5
A certificate of ownership in a corporation:
promise
ticket
bond
stock
6
Describe double taxation as it applies to corporations.
dividends are taxed as investments and income
dividends are taxed by state and local governments
dividends are taxed by corporations and the government
dividends taxed as corporate profits AND personal income
7
Chambers of commerce typically lobby the
federal
government for favorable laws toward their members.
False
True
8
Negotiations between a union & management regarding pay, benefits, etc.:
professional deal
labor union
conglomerate
collective bargaining
9
Describe the difference between a general partnership & a limited partnership.
general = all partners invest, limited = some partners invest
general = all partners responsible, limited = no partners responsible
general = partners work, limited = partners hire managers
general = all partners liable, limited = liability based on investment
10
Cooperatives conduct business for members' benefit, but not the community at large.
False
True
11
In order to form, corporations must receive permission from the ______ where they are headquartered.
city
state
county
nation
12
A co-op financial institution that provides services for members of a certain group:
merger
credit union
consumer co-op
state bank
13
Which of the following BEST describes net income?
funds left over after sales - expenses
the difference between sales revenue & sales tax revenue
money that's reinvested for the business
income withheld for taxes
14
A multinational pays taxes only in the country where it's headquartered.
True
False
15
Types of Businesses:
jointly owned by 2 or more individuals
franchise
corporation
partnership
sole proprietorship
16
Which of the following is NOT an advantage of being a franchisee?
high quality standards
risk reduction
deep product line
professional advice
17
Which one BEST describes "limited liability?"
debts are corp's problem, not owners
the owners are fully liable for all debts
businesses aren't allowed to advertise certain product features
business isn't liable if their product harms a user
18
Types of Co-ops:
ex. insurance, childcare; doesn't provide goods
service
consumer
producer
19
Which of the following BEST describes a conglomerate?
a firm w/ at least 4 businesses in different industries
a firm that rents out their business model
a firm that operates in multiple countries
a combo of 2 or more firms that work in different stages
20
Describe the differences between common & preferred stock.
common = claim on profit, preferred = voting rights
common = no voting rights, preferred = voting rights
common = voting rights, preferred = higher claim on profit
common = claim on profit, preferred = no claim on profit
21
Chambers of commerce typically lobby at which level of government?
federal
international
anarchic
state & local
22
Types of Businesses:
recognized by law as a separate entity from its owners
corporation
sole proprietorship
franchise
partnership
23
Funding Start-Ups:
provides funds in exchange for partial ownership
venture capitalist
crowdfunding
angel investor
incubator
24
Funding Start-Ups:
a place where entrepreneurs receive training & assistance
angel investor
incubator
crowdfunding
venture capitalist
25
Which business is the EASIEST form to start?
sole proprietorship
partnership
corporation
franchise
26
Types of Co-ops:
buys goods in bulk & sells them to members for lower prices
consumer
service
producer
27
Types of Co-ops:
helps members promote/sell their products
service
consumer
producer
28
The joining of firms that operate at different stages of production is a ____ merger.
vertical
horizontal
straight
lateral
29
Sole proprietorships are generally the easiest businesses to start.
True
False
30
Types of Businesses:
renting/leasing of a successful business model
sole proprietorship
corporation
partnership
franchise
31
Which of the following is NOT a legal right of a corporation?
can sue & be sued
buy & sell property
evade taxes
enter into legal contracts
32
The owner of a business who allows the rental/lease of their property:
stockholder
dividend
partner
franchisor
33
The vast majority of American nonprofits exist as proprietorships and partnerships.
True
False
34
A portion of corporate profit that is given to stockholders:
cooperative
dividend
asset
preference
35
Which of the following is a criticism of multinationals?
interference w/ local businesses
higher quality standards
low production costs
increased standard of living
36
Funding Start-Ups:
informal investors who fund less promising start-ups
incubator
venture capitalist
crowdfunding
angel investor
37
When a firm ceases operations after the owner dies/quits, this is known as _____ life.
limited
unlimited
preferred
liable
