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​What is the name given to the governing body of a corporation?


A) ​Board of directors.
B) ​Officers.
C) ​Shareholders.
D) ​Preferred shareholders.

E) All of the above
F) A) and B)

Correct Answer

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A voluntary association of two or more people acting as co-owners of a business is known as a


A) partnership.
B) corporation.
C) sole proprietorship.
D) conglomerate.
E) syndicate.

F) None of the above
G) C) and D)

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Walters Company, LLC, is a wholesale distributor of industrial packaging. A primary advantage that Walters enjoys as an LLC that corporations do not have is


A) ease of formation.
B) limited liability.
C) avoiding double taxation.
D) one class of outstanding stock.
E) income taxes.

F) C) and D)
G) D) and E)

Correct Answer

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Ted's partnership agreement with two other men was a bit unsound. One of the problems the men were encountering was uneven productivity among the partners. The agreement required each partner to contribute to every aspect of the business to receive an equal portion of the profits. This agreement did not reflect the idea that


A) all partners need not be equal; that is, there are different types of partners.Some may be fully active in running the business, whereas others may have a more limited role.
B) limited partners are required to be active in day-to-day business operations.
C) customers and creditors of a limited partnership need not be protected.
D) the Uniform Partnership Act requires every general partnership to have at least one limited partner.
E) each partner must agree to contracts entered into on behalf of all the others.

F) C) and D)
G) A) and E)

Correct Answer

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Which of the following is not an advantage of a sole proprietorship?


A) It is easy to form and dissolve.
B) It has unlimited liability.
C) Profits are taxed as personal income.
D) There owner has the flexibility of being his or her own boss.
E) The owner keeps all profits.

F) B) and C)
G) A) and C)

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Tiffany is about to finish her degree in business management and wants to find a job that will provide her with opportunities to advance within an organization. What type of business organization should Tiffany work for?


A) A sole proprietorship
B) A small family-owned business that is incorporated
C) A partnership
D) A corporation
E) An unlimited partnership

F) A) and C)
G) D) and E)

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A common tactic of corporate raiders is to start a proxy fight.

A) True
B) False

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Common stockholders have the right to elect a corporation's board of directors and vote on corporate matters.

A) True
B) False

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Financial experts agree that takeovers enhance corporate profitability and productivity.

A) True
B) False

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​Maurice and Stanley's train store has grown to the point that they need more capital to expand the current location and to open stores in other cities. They do not want the liability of taking out a loan and are no longer concerned about government oversight but would still like to maintain limited liability. They would most likely form a


A) ​corporation.
B) ​sole proprietorship.
C) ​syndicate.
D) ​co-op.

E) B) and D)
F) B) and C)

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​In a 1960s movie, an heiress sends out thousands of letters to shareholders in an attempt to have them vote for her and for the company to remain independent or to give her the right to vote for them. The opponent tried to get the shareholders to vote for his side and asked shareholders to give him the right to vote for them. What kind of corporate takeover technique was this movie about?


A) ​A proxy fight.
B) ​A tender offer.
C) ​A hostile merger.
D) ​A non-profit takeover.

E) B) and C)
F) None of the above

Correct Answer

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When incorporating, a business


A) may incorporate in any state it chooses.
B) must incorporate in the state in which its headquarters are located.
C) must incorporate in the state in which it does the most business.
D) must receive the secretary of state's permission to incorporate in any state other than the one in which its corporate headquarters will be located.
E) must do none of the above.

F) All of the above
G) D) and E)

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When starting a corporation, people submit articles of incorporation to


A) a county judge.
B) the secretary of state.
C) the U.S.Attorney General.
D) the Department of Commerce.
E) the Small Business Administration.

F) B) and D)
G) A) and D)

Correct Answer

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Refer to B&G, Inc. What type of organization was Kevin considering switching to?


A) Limited-liability corporation
B) Sole proprietorship
C) S-corporation
D) Not-for-profit corporation
E) Closed corporation

F) D) and E)
G) A) and B)

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Every partnership must have at least one limited partner.

A) True
B) False

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Not-for-profit organizations must meet specific guidelines in order to obtain tax-exempt status. These guidelines are structured by the


A) board of directors.
B) U.S.Uniform Partnership Act.
C) U.S.Bureau of the Census.
D) Chamber of Commerce.
E) Internal Revenue Service.

F) All of the above
G) None of the above

Correct Answer

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The retail card and gift shop chain that Heidi started has since been incorporated. Which of the following best describes the limited liability that Heidi has as the primary stockholder in this corporation?


A) Heidi has no responsibility if the business fails and will still be able to get her initial investment back.
B) Heidi may have to give up her car and house if the corporation fails in order to cover the debts of the corporation.
C) The other stockholders will be able to seize Heidi's personal money but not her primary residence in the event that the business fails.
D) Heidi's personal assets will be protected in the event that the corporation fails, although she could lose her entire investment.
E) Heidi will only be liable for losses that develop from decisions she made about the daily business operations.

F) B) and E)
G) None of the above

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An S-corporation can have no more than twenty stockholders.

A) True
B) False

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Shares of Burger House stock cannot be purchased on any stock exchange or by just any individual. This means that Burger House is a(n)


A) alien corporation.
B) partnership.
C) open corporation.
D) family corporation.
E) closed corporation.

F) A) and B)
G) C) and D)

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Amy owns 100 shares of General Electric preferred stock. She wants to attend the annual stockholder meeting to cast her vote on company issues. Based on your knowledge from school, you caution Amy that


A) people with fewer than 1,000 shares of stock cannot vote.
B) stockholders are not allowed to attend the annual meetings.
C) most preferred stock does not have voting rights.
D) only institutional investors are allowed to attend the meetings.
E) she can vote only by proxy and not in person.

F) B) and D)
G) B) and C)

Correct Answer

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Showing 141 - 160 of 213

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