About three-quarters of all businesses in the United States are sole proprietorships, and they earn somewhere around 10 percent of total business income. We may conclude that
there are many sole proprietorships, but their average income is small.
All of the following are advantages of a corporation except
lower frequency of taxation.
An important advantage of a corporation is its
Anand has been asked to join a new partnership that is developing wind energy technologies. Because the business is high risk, he does not want to be liable for the firm's debts if the project should fail. He could still participate as a
Barber shops, dog kennels, and independent grocery stores are typically
Companies of all sizes grow and improve profitability by
Expanding their operations
One of the most popular and easiest to establish forms of business in the United States is the
Ruji has realized that she does not like working for others. She wants to open a business in which she will have maximum control and the least interference from government regulation. Which business form might be best for her to use?
The decision-making process in a partnership tends to be faster when the partnership is
The following is an advantage of a sole proprietorship:
profits are not shared
The income earned by sole proprietorships is
taxed as personal income.
The organizational form that many consider to be a blend of the best characteristics of corporations, partnerships, and sole proprietorships is the
limited liability company.
When companies operating at different, but related, levels of an industry merge, it is known as a(n)
When two companies combine to form a new company, it is called a(n)
Which of the following is a disadvantage of a partnership?
Difficulty of selling ownership
Which of the following is an advantage of a partnership?
Ease of organization
Which of the following is not a source of funds for a sole proprietorship?
Selling stock or issuing bonds
Which of the following organizational forms is most expensive to set up?
Which of the following requires owners to perform many functions and possess diverse skills to make decisions?
Which stockholders usually have the right to vote and control the board of directors?
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