Chapter 5 quiz from Understanding Business text book.
Sole proprietorship
Limited partnership
Corporation
Cooperative
Limit her personal liability to the amount she personally invests in the company
Be the only person allowed to share in the firm's profits
Obtain a strong financial base for the firm while maintaining personal control over the firm's management
Meet the legal requirements of the Uniform Partnership Act
Lose their personal assets as the result of their company's financial problems
Lose only the funds they originally invested in their company
Lose only the total value of the assets actually used to operate the business
Avoid any liability for these debts since a partnership is considered to be a business entity that is separate and distinct from the partners who own it
Sole proprietorship
General proprietorship
Corporation
Limited liability partnership
Can be taxed either as a corporation or as a partnership, so owners can choose the tax treatment that is most advantageous for their situation
Allow owners to sell their interests in the company without requiring approval from other owners
Have unlimited life
Allow owners to avoid paying self-employment taxes on the company's profits
Move the company elsewhere and start over
Obtain the assets of the company through bankruptcy proceedings
Use borrowed funds to buy out the firm's stockholders
Negotiate a merger with another firm to create a conglomerate
Conglomerate merger
Leveraged buyout
Horizontal merger
Joint venture
Has become the dominant form of business organization in the United States because it has many advantages and almost no disadvantages
Appeals to people who want to own a business, but are not comfortable starting a company from scratch
Has a much higher risk of failure than independent companies
Has little chance of success outside the United States because many foreign countries do not allow such arrangements
Owner; limited partner
Co-signer; co-signee
Franchisor; franchisee
Wholesaler; retailer
Corporation
Limited partnership
Mutual fund
Cooperative
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