Chapter 4 Review PDF

**Chapter 4** **Review** 1\. What is a business owned by one person who is subject to the claims of creditors. It is the simplest form of business ownership? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 2\. What are the disadvantages of a sole proprietorship? 1. \_\_\_\_\_\_\_\_\_\_\...

**Chapter 4** **Review** 1\. What is a business owned by one person who is subject to the claims of creditors. It is the simplest form of business ownership? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 2\. What are the disadvantages of a sole proprietorship? 1. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 2. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 3\. What is the voluntary association of two or more people who have combined their resources and talents to carry on as co-workers for a lawful business for profit? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 4\. Who are those that actively engage in the business and is known to everyone as a partner? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 5\. Who is one who takes no active part in the management of a partnership business but in return for investing capital, has a right to share in the profits? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 6\. Who takes no active part in the management of a partnership, but the public knows is a partner. Their liability for the firm's debts is limited to the amount of their investment. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 7\. In what type of liability can the plaintiff sue all the partners or each one individually. This makes it possible for a plaintiff to collect the full amount of the judgement from all the partners or just one. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 8\. What is a business entity? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 9\. What type of corporation is formed to carry out a government function such as cities, state universities, and public hospitals? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 10\. What type of corporation is formed to perform some non-governmental function such as non-profit organizations that includes charities, education, religious, social, or a fraternal purpose? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 11\. What type of corporation does not distribute profits to members, elects officers or directors, and does not issue stock? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 12\. What type of corporation is organized to run a business and make money? \_\_\_\_\_\_\_\_\_\_\_\_\_\_ 13\. What type of corporation does not pay corporate income tax; the owners report the profit as income on their personal income tax returns? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 14\. What type of corporation has a very small number of people who own stock, and the stockholders are normally active in the management of the business? 15\. What is a corporation called in the state where it received its initial charter? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 16\. What is a corporation called in all other states other than the state where it received its charter, although it can legally operate in those other states. \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 17\. What is the person called who takes the initial steps to form a corporation? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 18\. What is the written document that is filed with the government (usually the state) that signifies the creation of a corporation? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 19\. What are people called who have achieved ownership in a stock corporation by acquiring one or more share of stock? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 20\. What is the minimum number of shares that must be present to conduct business at a stockholder's meeting called? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 21\. What represents the total number of shares, both common and preferred, issued by a company? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 22\. What is the simplest and the normal type of stock issued and entitles the owner to vote**?** **\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_** 23\. What type of stock entitles the holder to a fixed dividend, and their payment takes priority over that of other stock dividends? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 24\. What is a business organization that is operated like a partnership but also has features of a corporation; the owners are called members, not partners? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 25\. What type of company is not subject to unlimited liability for each partner? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 26\. What type of taxation do partners in a limited liability corporation have? 27\. What type of property is land and everything that is attached to it? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 28\. What is the term for anything that is permanently attached to the land which cannot be removed without damaging the property such as buildings, fences, or walls? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 29\. What is the written title to real property? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 30\. What is a history of the real estate that will reveal any problems such as unpaid taxes, outstanding mortgages, unpaid judgements, or liens against the property? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 31\. What is an agreement that allows a person to borrow money to purchase or refinance property? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 32\. What is the contract between the landlord and the tenant is called? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 33\. What is moveable property? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 34\. What type of property consists of items that can be touched, such as vehicles, furniture, or household goods? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 35\. What type of property includes stocks, bonds, copyrights, and patents? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 36\. What type of property can be used either for business or personal use, such as a computer that you use for work or personal matters? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 37\. What is a document showing legal ownership to personal property? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 38\. What legally shows that personal property has been transferred to a new owner? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 39\. What legally transfers the title of the property from you, the grantor or donor, to another person or entity that is used to convey property as a gift from one family member to another, or to donate property to a nonprofit? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 40\. If property has been lost or mislaid, by the owner, then the owner? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 41\. If property is abandoned and another person takes possession, then the finder has? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 42\. What is a contract that transfers the risk of loss from a person to a company by paying a fee? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 43\. Who evaluates insurance applications and decides whether to provide insurance and the amounts and premiums? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 44\. In a life insurance policy, the person who will receive benefits is called the? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 45\. What term means that the policy holder does not want a loss to occur because it would cause a financial loss for them? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 46\. What type of insurance policy guarantees payment of the death benefit to the beneficiaries if the insured person dies during a specified time frame, have no savings component, and only pays the guaranteed death benefit? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 47\. What type of insurance policy is guaranteed to remain in effect for the insured's entire lifetime? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 48\. What type of insurance policy offers long-term protection but has a disadvantage that the premiums can continue to increase? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 49\. What is a form of comprehensive insurance that offers coverage in case of damage or injury caused by a business's operations or products, or on its premises? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_ 50\. What is extra liability insurance coverage that goes beyond the limits of the insured\'s homeowners, auto, or watercraft insurance and provides an additional layer of security to those who are at risk of being sued for damages to other people\'s property or injuries caused to others in an accident? \_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_