5 Written questions
5 Matching questions
- institutional investor
- limited liability partnership
- S corporation
- statutory close corporation
- a A form of corporation that avoids double taxation by having its income taxed as if it were a partnership.
- b A corporation with a limited number of owners that operates under simpler, less formal rules than a C corporation.
- c A form of business ownership in which the business is considered a legal entity that is separate and distinct from its owners
- d A form of partnership in which all partners have the right to participate in management and have limited liability for company debts.
- e An organization that pools contributions from investors, clients, or depositors and uses these funds to buy stocks and other securities
5 Multiple choice questions
- A broad franchise agreement in which the franchisee pays for the right to use the name, trademark, and business and production methods of the franchisor.
- type of franchising arrangement in which the franchisor makes a product and licenses the franchisee to sell it.
- When owners are not personally liable for claims against their firm. Limited liability owners may lose their investment in the company, but their personal assets are protected.
- A voluntary agreement under which two or more people act as co-owners of a business and have unlimited liability for any claims against the firm
- A detailed description of all aspects of a franchise that the franchisor must provide to the franchisee at least 14 calendar days before the franchise agreement is signed.
5 True/False questions
merger → A corporate restructuring that occurs when two formerly independent business entities combine to form a new organization.
partnership → A voluntary agreement under which two or more people act as co-owners of a business for profit.
divestiture → A corporate restructuring that occurs when two formerly independent business entities combine to form a new organization.
franchise agreement → The contractual arrangement between a franchisor and franchisee that spells out the duties and responsibilities of both parties.
nonprofit corporation → The most common type of business corporation, where ownership offers limited liability to all of its owners, also called stockholders.