2.01 Study Guide (Principles of Business & Finance) (Unit 2) – Flashcards
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Even though a company may sell shares of stock, it relies on a central body of people for financial directions. This is an example of what type of business?
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corporation
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Carlos ignores minor decisions in his business even though his name is on the sign as one of the owners. This is an example of what type of business ownership?
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Partnership
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Todd decided to form a corporation instead of a sole proprietorship because of which ADVANTAGE listed below?
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Limited Liability
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Several small businesses that sell organic foods have joined together to increase their chances to pay lower prices for inventory. This is an example of what type of business?
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Cooperative
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Chun purchased 150 shares of stock in the Panasonic Company. How many votes will she have at the next stockholder's meeting?
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150
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Both Bob and Jeri contributed to the expansion of their business to sell more brands of tires. They both experienced which ADVANTAGE of a partnership over a sole proprietorship?
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More Capital Available
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Mary owns stock for several companies, which she plans to pass ownership to her grandchildren. She chose this form of ownership over sole proprietorship because of the ADVANTAGE of:
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Potential of Unlimited Life
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Tami opened an auto body shop after repairing a couple of cars to the high satisfaction of customers. She has experienced which ADVANTAGE over a corporation?
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Ease Of Formation
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Since Jane's corporation has become so popular, she has decided to allow other businesses to sell her products. This is an example of what type of business?
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Franchise
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Tami prefers working alone in her auto body shop and being in control of the daily activities. This type of business ownership ADVANTAGE over corporation is:
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Control Of Decisions
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Hank has ownership, even without liability over his initial investment, along with George for a local business. This is an example of what type of business ownership?
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Partnership
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Tami wants to invest money in shares of stock. She would have to pay taxes on her earnings twice. Which is an ADVANTAGE of a sole proprietorship over a corporation?
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Single Taxation
