Chapter 7

Question 1

Zoning laws

Answer 1

Law and a city or town that designates separate areas for residency and for businesses

Question 2

Liability

Answer 2

The legally bound obligation to pay debts

Question 3

General partnerships

Answer 3

Partnership in which partners share quality in both responsibility and liability

Question 4

Limited liability partnership (LLP)

Answer 4

Partnership in which all partners are limited partners

Question 5

Unlimited liability

Answer 5

At least one partner has unlimited liability each general partner is bound by the acts of the others

Question 6

Potential for conflict in limited liability partnership

Answer 6

Partners must agree on goals work habits ethics management styles and general business philosophies

Question 7

Stockholder liability

Answer 7

Owning this doctor is not in itself imply that the stockholder is responsible for the companies debt

Question 8

Double taxation

Answer 8

Keeps many firms from incorporating

Question 9

Horizontal merge

Answer 9

The combination of two or more firms competing in the same market with the same goods or service

Question 10

Vertical merge

Answer 10

The combination of two or more firms in different stages of production producing the same good or service