Principles of business and finance (Test 1) 9-24-15

Flashcard maker : Lily Taylor
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?
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?
Unlimited liability
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?
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?
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?
Sole proprietorship
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?
Limited capital
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:
Control of decisions
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:
potential of unlimited liability
Todd decided to form a corporation instead of sole proprietorship because of which ADVANTAGE listed below?
Single taxation
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?
Limited liability
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 which type of business ownership?
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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