Chapter 6 Flashcards
What is the disadvantages of some proprietorship
Limited liability
Unlimited liability with respect to business ownership means
Having an obligation to pay all business debt
What is one disadvantage to a partnership
Unlimited liability
In a partnership, all profits and losses flow through each partner’s
Tax returns
Policies regarding all of the following points should be included in a partnership agreement expect
Division of stock
What is the limit of liability of a limited partner
The amount of his/Her investment
What is correct about the operation or corporation
A corporation is a separate entity and is legally formed under state laws
Management and ownership roles would most likely be separated in what type of business structure
Corporation
What is not the responsibility of the board of directors
Managing the company’s daily operation
What is most accurate about s corporation
A cooperative is a type of business that is governed by … who use its products or services
Members
Companies most often resort to merger and acquisitions when they want to expand their markets and products line because
It minimizes time and investment to research and develop new products
An … acquisition occurs when one company tries to take control over another company against its wishes
Hostile
True or false of a sole proprietorship are taxed as the personal income of the owner.
True
true or false the biggest difference between general and limited partnerships involves who accepts most of the business liability
True
