Chapter 8 Flashcards
Dr. Ruiz 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 an example of a
General partnership
Which of the following represents the percentage of all U.S. businesses that are corporations, and the percentage of all goods that those corporations sell?
20 percent of businesses; 90 percent of goods sold
Which of the following I a disadvantage of a sole proprietorship?
Lack of permanence
Everyday on your way to basketball practice you wave to Mr. Martin, who owns the neighborhood flower stand. Mr. Martin’s 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 stated a catering business, but soon 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 are 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 if businesses are sole proprietorship?
75 percent
What are the money and other valuables that belong to a corporation or partnership called?
Assets
You are part-owner of NewBrands corporation because you
Own the company’s stock
In a publicly held corporation
A large number if stockholders can buy and sell stock.
You own a successful bicycle repair business. You are considering incorporating in order to
Raise money mere easily.
Your running shoes were designed in the United States but assembled in Asia by a company called RunerPro. RunerPro 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?
A partnership has more personal stability and access to more money.
If a general partnership fails, who is responsible for the debts?
All o 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 if he following is an advantage of a sole proprietorship?
It is least-regulated firm of business organization.
The government usually allows conglomerates because they
Do not result in decreased competition
What are organizations that are in businesses if benefiting society and operate like a business called?
Nonprofit organization
What are royalties?
A percentage of a franchise’s 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 merger carefully for evidence of a
Monopoly
