Question

study guide - business organizations

1. a (firm) is an establishment formed to carry on a commercial enterprise.
2. a is a business owned and managed by a single individual.
3. a is a business organization owned by two or more persons who agree on specific divisions of responsibilities and profits.
4. a partnership shares equal liability and responsibility
5. a partnership (silent partner) in which only one partner is required to be a general partner and protects the other partner from liability in the case of another partners mistake.
6. the outline the agreements between partners.
7. a is a business organization that is considered to be a separate legal entity, which is owned by individual stockholders.
8. the easiest form of business to start up is a
9. is a certificate of ownership in a corporation.
10. why would unlimited liability be a disadvantage for a sole proprietorship?
11. corporations are privately held corporations, that do not trade stock on the public exchange
12. corporations are sells stock on the market to investors in order to grow the business
13. a disadvantage of a is that there is a potential for conflict because of disagreements in decision - making.
14. a is a corporation that produces and sells its goods and services in many countries.
15. a merger is when two or more similar firms join as one entity.
16. a merger is when two or more different firms join as one entity.
17. a is when a firm has three or more business merge.
18. a is a type of business that pays fees to a parent company to use their already established name.

Explanation:

1. A business organization (firm) is a commercial - related entity.
2. A sole proprietorship is owned and managed by one person.
3. A partnership involves multiple owners with agreed - upon responsibilities and profit - sharing.
4. In a general partnership, all partners have equal liability.
5. A limited partnership has one general partner and protects silent partners from certain liabilities.
6. Partnership agreements outline the terms between partners.
7. A corporation is a separate legal entity owned by stockholders.
8. A sole proprietorship is often the easiest to start.
9. A stock is a certificate of ownership in a corporation.
10. In a sole proprietorship, unlimited liability means the owner's personal assets are at risk.
11. Closely - held corporations are privately owned and don't trade publicly.
12. Public corporations sell stock to investors for growth.
13. Partnerships may face conflict due to decision - making disagreements.
14. A multinational corporation operates in multiple countries.
15. A horizontal merger is between similar firms.
16. A vertical merger is between different firms in the supply chain.
17. A conglomerate merger involves three or more businesses.
18. A franchise pays fees to use a parent company's name.

Answer:

1. Business Organization
2. Sole Proprietorship
3. Partnership
4. General
5. Limited
6. Partnership Agreements
7. Corporation
8. Sole Proprietorship
9. Stock
10. Because the owner's personal assets are at risk for business debts.
11. Closely - held
12. Public
13. Partnership
14. Multinational Corporation
15. Horizontal
16. Vertical
17. Conglomerate
18. Franchise