Question 1

Which form of business ownership has the most difficulty in raising capital?

Accepted Answer

A)   a sole proprietorship
B)   a general partnership
C)   a limited partnership
D)   a corporationE) A) and D)
F) B) and C)

Question 2

The corporation's board of directors hire the corporate officers.

Accepted Answer

A) True 
 B)False

Question 3

The purchase and subsequent takeover of Marks Work Warehouse by Canadian Tire is an example of which of the following?

Accepted Answer

A)   a merger
B)   an acquisition
C)   a voluntary union
D)   a joint ventureE) A) and B)
F) B) and D)

Question 4

Which type of merger brings together companies in unrelated businesses to reduce risk?

Accepted Answer

A)   a diagonal merger
B)   a horizontal merger
C)   a vertical merger
D)   a conglomerateE) A) and B)
F) A) and C)

Question 5

What does the fact that a corporation has limited liability mean?

Accepted Answer

A)   Owners' liabilities are limited to the amount invested.
B)   It can earn a limited amount.
C)   Some of the owners are limited in earnings.
D)   The life of the corporation is limited.E) C) and D)
F) B) and C)

Question 6

A corporation's earnings are taxed as corporate earnings and as dividends to the shareholders.What is this known as?

Accepted Answer

A)   double jeopardy
B)   double indemnity
C)   double taxation
D)   primary and secondary taxationE) B) and C)
F) A) and D)

Question 7

What do partnership agreements generally specify?

Accepted Answer

A)   the methods of taxation of each partner
B)   the contributions of each partner
C)   the percentage of revenue to be generated by each partner
D)   the provisions for spouses and family to work in the partnershipE) A) and B)
F) A) and D)

Exam 8: Forms of Business Ownership

A corporation's earnings are taxed as corporate earnings and as dividends to the shareholders.What is this known as?

Correct Answer
verified

The purchase and subsequent takeover of Marks Work Warehouse by Canadian Tire is an example of which of the following?

Correct Answer
verified

Which type of merger brings together companies in unrelated businesses to reduce risk?

Correct Answer
verified

What do partnership agreements generally specify?

Correct Answer
verified

Which form of business ownership has the most difficulty in raising capital?

Correct Answer
verified

What does the fact that a corporation has limited liability mean?

Correct Answer
verified

The corporation's board of directors hire the corporate officers.

Correct Answer
verified

Exam 8: Forms of Business Ownership

A corporation's earnings are taxed as corporate earnings and as dividends to the shareholders.What is this known as?

Correct AnswerverifiedShow Answer

The purchase and subsequent takeover of Marks Work Warehouse by Canadian Tire is an example of which of the following?

Correct AnswerverifiedShow Answer

Which type of merger brings together companies in unrelated businesses to reduce risk?

Correct AnswerverifiedShow Answer

What do partnership agreements generally specify?

Correct AnswerverifiedShow Answer

Which form of business ownership has the most difficulty in raising capital?

Correct AnswerverifiedShow Answer

What does the fact that a corporation has limited liability mean?

Correct AnswerverifiedShow Answer

The corporation's board of directors hire the corporate officers.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified