CEM 100 – INTRODUCTION TO CONSTRUCTION
MANAGEMENT EXAM 1 (2025-2026) –
QUESTIONS AND VERIFIED ANSWERS
A business ownership form that has the principal advantages of limited liability of
its owners, perpetual life of the company, relative ease of raising capital, the easy
and workable provision of multiple ownership and the economic benefit that
owners pay taxes only on profits (dividends) actually received is the ____
Corporation
In the partnership method of business ownership, a partner that is liable for
partnership debts only up to the amount of their investments in the partnership
would be termed a ___
Limited partner
The ____ is not an enduring form of business ownership. Rather the ___ is a
temporary form of ownership whereby two or more companies unite and pool their
, resources, assets, and skills to perform a single construction project and then go
their separate ways again following completion
Joint Venture
In a partnership, ____ exist when one party, called the principal, authorizes another
who is called the ___ to act for the former in certain types of defined business or
commercial transactions
Agency, Agent
According to your textbook, in the settlement of the debts of a partnership, ___
enjoy a position of first priority
Outside creditors
Concerning establishing a partnership, state laws regarding partnerships are not
entirely consistent, although most states have adopted the ___ more or less
verbatim
Uniform Partnership Act
A stock palm that is a form of deferred compensation to those working fro the
corporation consisting of those working for the corporation investing in the stock
of their corporation, with these investments funded by tax-exempt contributions.
This stock plan termed a (an) ___ can be designed to accomplish different
MANAGEMENT EXAM 1 (2025-2026) –
QUESTIONS AND VERIFIED ANSWERS
A business ownership form that has the principal advantages of limited liability of
its owners, perpetual life of the company, relative ease of raising capital, the easy
and workable provision of multiple ownership and the economic benefit that
owners pay taxes only on profits (dividends) actually received is the ____
Corporation
In the partnership method of business ownership, a partner that is liable for
partnership debts only up to the amount of their investments in the partnership
would be termed a ___
Limited partner
The ____ is not an enduring form of business ownership. Rather the ___ is a
temporary form of ownership whereby two or more companies unite and pool their
, resources, assets, and skills to perform a single construction project and then go
their separate ways again following completion
Joint Venture
In a partnership, ____ exist when one party, called the principal, authorizes another
who is called the ___ to act for the former in certain types of defined business or
commercial transactions
Agency, Agent
According to your textbook, in the settlement of the debts of a partnership, ___
enjoy a position of first priority
Outside creditors
Concerning establishing a partnership, state laws regarding partnerships are not
entirely consistent, although most states have adopted the ___ more or less
verbatim
Uniform Partnership Act
A stock palm that is a form of deferred compensation to those working fro the
corporation consisting of those working for the corporation investing in the stock
of their corporation, with these investments funded by tax-exempt contributions.
This stock plan termed a (an) ___ can be designed to accomplish different
