Types of ownership
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Questions and Answers

Which type of ownership is popular among small businesses?

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

    • What is a key advantage of a sole proprietorship?

  • Limited managerial perspective
  • No employee benefits for the owner
  • Resource limitations
  • Single layer of taxation (correct)

    • What is a disadvantage of a sole proprietorship?

  • Privacy
  • Fewer limitations on personal income
  • Financial liability (correct)
  • Flexibility and control

    • What is a key advantage of a partnership?

    <p>More resources and leadership talent</p> Signup and view all the answers

    What is a disadvantage of a partnership?

    <p>Limited managerial perspective</p> Signup and view all the answers

    What is the main difference between a sole proprietorship and a partnership?

    <p>Number of owners</p> Signup and view all the answers

    Which type of partnership has one or more general partners who run the business and have unlimited liability, while the remaining owners have limited liability?

    <p>Limited partnership</p> Signup and view all the answers

    What type of corporation is sold to anyone who has the means to buy it and its shares are generally sold on the stock market?

    <p>Public corporation</p> Signup and view all the answers

    What is the term used to describe all the policies, procedures, relationships, and systems in place to oversee the successful and legal operation of a corporation?

    <p>Corporate governance</p> Signup and view all the answers

    What is the highest-ranking officer of a corporation called?

    <p>Chief Executive Officer (CEO)</p> Signup and view all the answers

    What is the term used to describe the acquisition of another company against the wishes of the acquired company's management?

    <p>Hostile takeover</p> Signup and view all the answers

    What is the term used to describe the acquisition of a company's publicly traded stock, using mostly borrowed funds, with the intent of using the acquired company's assets to pay back the loan?

    <p>Leveraged buyout</p> Signup and view all the answers

    Which one of the following best describes a strategic alliance?

    <p>A long-term partnership between companies to jointly develop, produce, or sell products.</p> Signup and view all the answers

    What is a joint venture?

    <p>A separate legal entity established by two or more companies to pursue common business goals.</p> Signup and view all the answers

    What is the main difference between a strategic alliance and a joint venture?

    <p>A strategic alliance is a long-term partnership, while a joint venture is a temporary partnership.</p> Signup and view all the answers

    What is the purpose of a strategic alliance?

    <p>To jointly develop, produce, or sell products.</p> Signup and view all the answers

    What is the purpose of a joint venture?

    <p>To create a separate legal entity for pursuing common business goals.</p> Signup and view all the answers

    What is the duration of a strategic alliance?

    <p>Long-term</p> Signup and view all the answers

    What is the duration of a joint venture?

    <p>Temporary</p> Signup and view all the answers

    How many companies are involved in a strategic alliance?

    <p>Two</p> Signup and view all the answers

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