According to the Uniform Partnership Act, the three key elements of any general partnership are:
Common ownership, shared profits and losses, and right to participate in management
The _____ is the most common form of business ownership
Double taxation means:
corporations pay taxes on their profits. If they distribute after-tax profits to the stockholders, the stockholders also pay taxes on the distribution
An advantage of a partnership is:
shared management and pooled skills
An attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing is called a(n):
What is normally considered a disadvantage of the corporate form of business?
double taxation of earnings
A(n)_______ is a state-charted legal entity with authority to act and to have liability seperate from its owners
Three types of corporate mergers are:
vertical, horizontal, and conglomerate
Several years ago, Regis corporation, a very large hair styling salon company purchased 60 "Your Father's Mustache" salons. Although this was initally an acquistion, the merging of these two businesses was a(n) ________. Regis went on to purchase several hair care product companies. Joining forces with hair care product companies would represent a ________.
horizontal merger, vertical merger
A _____ is an arrangement whereby someone with proven idea for a business sells the rights to use the business model, to sell aq product or service to others in a given territory.
What statement about a partnership is most accurate?
a major drawback of a partnership is that it is difficult to terminate.
One reason that companies participate in mergers and acquistions is:
to expand within their own field or enter new markets.
An owner of a corporation is known as a(n)
Halle wants to start a business. She has two goals. First, given her limited personal wealth and eagerness to get started, she wants to get her business up and running with the least possible hassle and expense. Second, she wants to minimize her personal risk in the event that her company experiences difficulties. If Halle chooses a sole proprietorship, she would
meet her first goal, since SP's are easy and inexpensive to form. However, she would expose herself to personal risk because owners of SP's have unlimited liability.
Two important considerations when choosing a form of business ownership is
taxes and liability
What is an advantage of a franchise
management and marketing assistance
A(n) ________ occurs when one company buys the property and obligations of another company
Finley is a limited partner in Gettout & Associates. Heywood U. Gettout, one of the general partners in the company, must temporarily leave the company to attend to some personal matters. Heywood has asked Finley to perform his managerial duties while he is gone. As a limited partner, Finley:
cannot participate in the management of the partnership