BUSN ch 6 Exam Questions and Answers Fully Solved Latest Update 2025-2026
Norman owns a large number of shares in a telecommunications corporation. Despite that, he does not
have the right to vote in a meeting held specifically to elect the CEO of the company. In this scenario,
Norman is most likely a _____. - Answerspreferred stockholder
FoodieGo, a catering company, is owned by foreign investors and local businessmen. Its earnings are
equally divided among its members. It does not face the problem of double taxation as taxes are only
levied on the personal income of the members. The owners of FoodieGo do not have personal liability
for any debts incurred by the company. In the given scenario, FoodieGo is an example of a _____. -
Answerslimited liability company
A firm considers _____ to increase size and market power within the industry. - Answershorizontal
mergers
A(n) _____ cannot distribute dividends to its members. - Answersnot-for-profit corporation
A textile corporation has two hundred odd stockholders. As it is inconvenient for so many stockholders
to manage the company, the stockholders elect a group of individuals to oversee the company's
operation and to represent their interests. In this scenario, the stockholders elect a _____. -
Answersboard of directors
Which of the following statements is true of the formation of general partnerships? - AnswersExpert
legal assistance can be acquired when drawing up a partnership agreement.
When a business that is incorporated in one state does business in other states, it is called a(n) _____ in
the state where it is incorporated. - Answersdomestic corporation
Which of the following is a similarity between a general partner and a limited partner in a limited
partnership? - AnswersBoth contribute financially to the company.
Ronald, Jamie, Ben, and Joseph are colleagues who want to start a company of their own. All of them
want to be actively involved in managing the business. However, they do not want any personal liability
for any debts incurred by the company. In this scenario, they should most likely get involved in a _____.
- Answerslimited liability partnership
The owners of limited liability companies (LLCs) are called members because: - AnswersLLCs are neither
corporations nor partnerships.
When people use the term "corporation" without specifying which type, they are generally referring to
a(n) _____. - AnswersC corporation
Which of the following statements is true of a typical franchise agreement? - AnswersIt requires the
franchisee to pay an initial fee.
Norman owns a large number of shares in a telecommunications corporation. Despite that, he does not
have the right to vote in a meeting held specifically to elect the CEO of the company. In this scenario,
Norman is most likely a _____. - Answerspreferred stockholder
FoodieGo, a catering company, is owned by foreign investors and local businessmen. Its earnings are
equally divided among its members. It does not face the problem of double taxation as taxes are only
levied on the personal income of the members. The owners of FoodieGo do not have personal liability
for any debts incurred by the company. In the given scenario, FoodieGo is an example of a _____. -
Answerslimited liability company
A firm considers _____ to increase size and market power within the industry. - Answershorizontal
mergers
A(n) _____ cannot distribute dividends to its members. - Answersnot-for-profit corporation
A textile corporation has two hundred odd stockholders. As it is inconvenient for so many stockholders
to manage the company, the stockholders elect a group of individuals to oversee the company's
operation and to represent their interests. In this scenario, the stockholders elect a _____. -
Answersboard of directors
Which of the following statements is true of the formation of general partnerships? - AnswersExpert
legal assistance can be acquired when drawing up a partnership agreement.
When a business that is incorporated in one state does business in other states, it is called a(n) _____ in
the state where it is incorporated. - Answersdomestic corporation
Which of the following is a similarity between a general partner and a limited partner in a limited
partnership? - AnswersBoth contribute financially to the company.
Ronald, Jamie, Ben, and Joseph are colleagues who want to start a company of their own. All of them
want to be actively involved in managing the business. However, they do not want any personal liability
for any debts incurred by the company. In this scenario, they should most likely get involved in a _____.
- Answerslimited liability partnership
The owners of limited liability companies (LLCs) are called members because: - AnswersLLCs are neither
corporations nor partnerships.
When people use the term "corporation" without specifying which type, they are generally referring to
a(n) _____. - AnswersC corporation
Which of the following statements is true of a typical franchise agreement? - AnswersIt requires the
franchisee to pay an initial fee.
