Business Test 2 Study Set Chapters
5-12 latest updates!!! 2026-2027 |
correct solutions with quiz &
answers | highly graded a+
the BLANK is the most common form of business ownership - CORRECT ANSWERS-
sole proprietorship
To many business people, one of the major attractions of a sole proprietorship is -
CORRECT ANSWERS-the chance to be their own boss
One of the major disadvantages of a sole proprietorship is the - CORRECT ANSWERS-
unlimited liability the owner has for the debts of the firm
Starting a new business as a sole proprietorship - CORRECT ANSWERS-is usually
simpler and less expensive than starting other forms of ownership
The form of business ownership that is best suited to raising large amounts of money
for expansion is the - CORRECT ANSWERS-corporation
A significant disadvantage of owning a sole proprietorship is the - CORRECT
ANSWERS-overwhelming time commitment often required of the owner
Joe Jackson operates a sole proprietorship, but he is in poor health and may be unable
to continue running the business. If Joe becomes incapacitated, his business -
CORRECT ANSWERS-ceases to exist unless sold or taken over by Joe's heirs
Which of the following statements is the most accurate? Sole proprietorships -
CORRECT ANSWERS-are easy to start and end
Compared to a sole proprietorship, which of the following is considered an advantage of
a general partnership? - CORRECT ANSWERS-ability to pool financial resources
Which of the following is an advantage of the corporate form of business when
compared to sole proprietorships and partnerships? - CORRECT ANSWERS-limited
liability of owners
, A difference between partnerships and sole proprietorships is that partnerships -
CORRECT ANSWERS-have a greater chance of long term survival
Which of the following statements about partnerships is the most accurate? -
CORRECT ANSWERS-a major drawback of a partnership is that it is difficult to
terminate
When comparing partnerships to sole proprietorships, an advantage of partnerships is
that they - CORRECT ANSWERS-give the firm a stronger financial foundation
An owner of a corporation is known as a(n) - CORRECT ANSWERS-stockholder
Which of the following is normally considered a major disadvantage of the corporate
form of business? - CORRECT ANSWERS-double taxation of earnings
The board of directors for a corporation is elected by its - CORRECT ANSWERS-
owners
A separation between ownership and management is most likely to occur in a -
CORRECT ANSWERS-corporation
One disadvantage of BLANK is the initial cost of starting this form of business
organization - CORRECT ANSWERS-corporation
Todd and Jorge have considered starting their own business but are concerned about
the possibility of losing their personal assets if the business fails. One way for both Todd
and Jorge to avoid this risk would be to organize their firm as a(n) - CORRECT
ANSWERS-corporation
Marie recently purchased 100 shares of stock in the McBun Development Corporation.
Marie has become a(n) BLANK of McBun Development - CORRECT ANSWERS-owner
Mergers and acquisitions: - CORRECT ANSWERS-often involve companies trying to
expand within their own field or enter new markets
The result of two firms combining to form one company is called a - CORRECT
ANSWERS-merger
A(n) BLANK occurs when one company buys the property and obligations of another
company - CORRECT ANSWERS-acquisition
Excursion Corporation recently bought out Suburban Engineering for an undisclosed
amount of money. It now owns all of Suburban's properties and obligations. This is an
example of a(n) - CORRECT ANSWERS-acquisition
5-12 latest updates!!! 2026-2027 |
correct solutions with quiz &
answers | highly graded a+
the BLANK is the most common form of business ownership - CORRECT ANSWERS-
sole proprietorship
To many business people, one of the major attractions of a sole proprietorship is -
CORRECT ANSWERS-the chance to be their own boss
One of the major disadvantages of a sole proprietorship is the - CORRECT ANSWERS-
unlimited liability the owner has for the debts of the firm
Starting a new business as a sole proprietorship - CORRECT ANSWERS-is usually
simpler and less expensive than starting other forms of ownership
The form of business ownership that is best suited to raising large amounts of money
for expansion is the - CORRECT ANSWERS-corporation
A significant disadvantage of owning a sole proprietorship is the - CORRECT
ANSWERS-overwhelming time commitment often required of the owner
Joe Jackson operates a sole proprietorship, but he is in poor health and may be unable
to continue running the business. If Joe becomes incapacitated, his business -
CORRECT ANSWERS-ceases to exist unless sold or taken over by Joe's heirs
Which of the following statements is the most accurate? Sole proprietorships -
CORRECT ANSWERS-are easy to start and end
Compared to a sole proprietorship, which of the following is considered an advantage of
a general partnership? - CORRECT ANSWERS-ability to pool financial resources
Which of the following is an advantage of the corporate form of business when
compared to sole proprietorships and partnerships? - CORRECT ANSWERS-limited
liability of owners
, A difference between partnerships and sole proprietorships is that partnerships -
CORRECT ANSWERS-have a greater chance of long term survival
Which of the following statements about partnerships is the most accurate? -
CORRECT ANSWERS-a major drawback of a partnership is that it is difficult to
terminate
When comparing partnerships to sole proprietorships, an advantage of partnerships is
that they - CORRECT ANSWERS-give the firm a stronger financial foundation
An owner of a corporation is known as a(n) - CORRECT ANSWERS-stockholder
Which of the following is normally considered a major disadvantage of the corporate
form of business? - CORRECT ANSWERS-double taxation of earnings
The board of directors for a corporation is elected by its - CORRECT ANSWERS-
owners
A separation between ownership and management is most likely to occur in a -
CORRECT ANSWERS-corporation
One disadvantage of BLANK is the initial cost of starting this form of business
organization - CORRECT ANSWERS-corporation
Todd and Jorge have considered starting their own business but are concerned about
the possibility of losing their personal assets if the business fails. One way for both Todd
and Jorge to avoid this risk would be to organize their firm as a(n) - CORRECT
ANSWERS-corporation
Marie recently purchased 100 shares of stock in the McBun Development Corporation.
Marie has become a(n) BLANK of McBun Development - CORRECT ANSWERS-owner
Mergers and acquisitions: - CORRECT ANSWERS-often involve companies trying to
expand within their own field or enter new markets
The result of two firms combining to form one company is called a - CORRECT
ANSWERS-merger
A(n) BLANK occurs when one company buys the property and obligations of another
company - CORRECT ANSWERS-acquisition
Excursion Corporation recently bought out Suburban Engineering for an undisclosed
amount of money. It now owns all of Suburban's properties and obligations. This is an
example of a(n) - CORRECT ANSWERS-acquisition
