Chapter 8 Flashcards
The doctor shares equal responsibility and liability with her colleagues in their medical practice. her practice is a
General partnership
The family owned Italian restaurant in your neighborhood is probably and example of
General partnership
Which of the following represents the percentage of all US businesses that are corporations and the percentages of all goods that those corporations sell
20% of businesses, 90 percent of goods sold
Which of the following is a disadvantage of a sole proprietorship
Lack of permanence
Every day on your way to basketball practice you wave to Mr. Martin, Who owns the neighbor hood flower stand. Mr. Martin store is probably a…
Sole proprietorship
You decide to go to a consumer cooperative to buy supplies for your class party prices are cheaper there mainly because consumer cooperatives..
Make larger purchases
Ellen started a catering business person decided that catering was too stressful for her she could close her business relatively easily and return to school because the business was a
Sole proprietorship
You were looking for a job with many fringe benefits you therefore probably want to work for a
Corporation
What is the major difference between a corporation and other kinds of businesses
A corporation has a separate entity apart from that of the owners and workers
What percentage of businesses are so proprietorships
75%
What are the money and other valuables that belong to a corporation or partnership called
Assets
You are part owner of new brands Corporation because you
Own the companys stock
In a publicly held corporation
A large number of stockholders can buy and sell stock
You own a successful bicycle repair business you are considering incorporating in order to
Raise money more easily
Your running shoes were designed in the US but assembled in Asia by a company called runnerpro. Runnerpro is a
Multinational corporation
Why is it easier for a partnership to borrow money and to hold good employees than it is for a sole proprietorship to do so
I partnership has more personal stability and access to more money
If a general partnership fails who’s responsible for the debts
All the partners
A joining of two or more businesses that are involved in different stages of producing the same good or service is called which of the following
Vertical merger
Which of the following is an advantage of a sole proprietorship
It is the least regulated form of a business organization
The government allows conglomerates because they
Do not result in decreased competition
What are the organizations that are in the business of benefiting society and operate like a business called
Nonprofit organization
What are royalties
A percent of a franchise earnings paid to the parent company
What is a fringe benefit
A payment other than wages or salaries
Good wireless and better wireless merge to form best wireless the federal government watches this merge carefully for evidence of a
Monopoly
