comm 101 lecture 4

What are the 3 basic forms of business ownership?

Partnership (correct)
Corporation (correct)
Sole proprietorship (correct)
Limited liability company

A sole proprietorship is a:

Corporation with multiple shareholders
Franchise operated by a group
Business established, owned , operated and often financed by one person (correct)
Partnership between two individuals

A partnership business is defined as:

A business owned by a single individual.
A business where two or more individuals share ownership and responsibilities. (correct)
A corporation that is owned by shareholders.
A non-profit organization.

What is a corporation?

A legal entity with authority to act and have liability separate from its owners (B) Signup and view all the answers

A general partnership is where:

Two or more individuals share profits and losses of a business. (A) Signup and view all the answers

What role do limited partners typically play in a partnership?

They invest money into the business, but have no management responsibility and whose liability is limited to their investment (B) Signup and view all the answers

A limited liability partnership is where:

Partners share responsibility for managing the partnership , but are protected from responsibility for the acts of other partners (B) Signup and view all the answers

What are public corporations?

Companies whose shares are traded publicly (B) Signup and view all the answers

What is a private corporation?

A corporation whose number of shareholders is limited and shares don't trade on a recognized stock exchange (C) Signup and view all the answers

What is a crown corporation?

A government-owned corporation (B) Signup and view all the answers

What is the startup process for a sole proprietorship business?

Register business name + obtain a business license (A) Signup and view all the answers

What is the startup process for a partnership business?

Registering the business name and obtaining a business license, optionally drafting a partnership agreement (A) Signup and view all the answers

What is the start-up process of a corporation?

Register name, business license, articles of incorporation and an annual meeting (A) Signup and view all the answers

Cooperatives are defined as what type of organizations?

a legal entity owned and operated by a group of individuals for their mutual benefit (C) Signup and view all the answers

Which of the following statements about cooperatives is correct?

Cooperatives have limited liability, unlimited lifespan, and all profits are distributed to the member-owners in proportion to their contributions. (A) Signup and view all the answers

What is a joint venture?

Two or more companies form an alliance and agree to contribute resources to pursue a project, sometimes for a specified time (B) Signup and view all the answers

What are business mergers?

The combination of two or more companies into a single entity (A) Signup and view all the answers

What are business acquisitions?

The purchase of one business by another company or investor group (B) Signup and view all the answers

A horizontal merger is when:

Firms at the same stage of the same industry merge (A) Signup and view all the answers

A vertical merger is when:

Firms at different stages of the same industry merge (A) Signup and view all the answers

A conglomerate merger occurs when:

Firms in unrelated industries merge (D) Signup and view all the answers

What is a characteristic of a hostile takeover merger?

It goes against the wishes of the target company's management and board of directors. (B) Signup and view all the answers

comm 101 lecture 4

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