Instructions for Side by Side Printing
- Print the notecards
- Fold each page in half along the solid vertical line
- Cut out the notecards by cutting along each horizontal dotted line
- Optional: Glue, tape or staple the ends of each notecard together
Business: Chapter 4
front 1 A business that is owned (and usually operated) by one person is called _________ ________ | back 1 Sole proprietorships |
front 2 What is the simplest form of business ownership adn the easiest to start? | back 2 Sole proprietorships |
front 3 What is the most popular form of business ownership? | back 3 Sole proprietorships |
front 4 5 advantages of Sole Proprietorships | back 4 Ease of start-up |
front 5 5 disadvantages of sole proprietorshipps | back 5 Unlimited liability |
front 6 A voluntary association of two or more persons to act as co-owners of a business for profit is called _____________ | back 6 partnerships |
front 7 What is a less common form of ownership than sole proprietorship or corporation? | back 7 Partnerships |
front 8 There is a limit on the maximum number of partners in partnerships. T/F | back 8 False no legal limit Most only have 2 |
front 9 What type of business have multiple partners? (3) | back 9 Large accounting law advertising |
front 10 _________ are usually a pooling of special talents or the result of a sole proprietor taking on a partner | back 10 partnerships |
front 11 What is the type of partner is A person who assumes full or shared responsibility for operating a business? | back 11 general |
front 12 ________ ____________ is a business co-owned by two or more general partners who are liable for everything the business does | back 12 general partnership |
front 13 What is the type of partner is A person who contributes capital to a business but has no management responsibility or liability for losses beyond the amount he or she invested in the partnership? | back 13 limited partner |
front 14 ______ _________ is a business co-owned by one or more general partners who manage the business and limited partners who invest money in it | back 14 limited partnership |
front 15 What is an agreement listing and explaining the terms of the partnership; written is preferable to oral? | back 15 articles of partnership |
front 16 What should the articles of partnership state? (5) | back 16 Who will make final decisions |
front 17 6 advantages of partnerships | back 17 Ease of start-up |
front 18 4 advantages of partnerships | back 18 Unlimited liability |
front 19 _________ is An artificial person created by law with most of the legal rights of a real person, including the rights to start and operate a business, to buy or sell property, to borrow money, to sue or be sued, and to enter into binding contracts. | back 19 Corporations |
front 20 Corporations only exists on paper. T/F | back 20 True |
front 21 Approximately how many corporations are in the US? | back 21 6 million |
front 22 What percentage of all business are comprised of corporations? | back 22 19% |
front 23 What percentage do corporations account for sales revenues? | back 23 83% |
front 24 ______ is The shares of ownership of a corporation | back 24 stock |
front 25 _____________ is A person who owns a corporation’s stock | back 25 stockholder |
front 26 ________ ___________ is A corporation whose stock is owned by relatively few people and is not sold to the general public | back 26 closed corporation |
front 27 ___________ _____________ is A corporation whose stock is bought and sold on security exchanges and can be purchased by any individual | back 27 open corporation |
front 28 What is the process of forming a corporation? | back 28 incorporation |
front 29 What do most experts recommend when forming a corporation? | back 29 consulting a lawyer |
front 30 _____________ corporation is A corporation in the state in which it is incorporated | back 30 domestic |
front 31 _______________ corporation is A corporation in any state in which it does business except the one it which it is incorporated | back 31 foreign |
front 32 ___________ corporation is a corporation chartered by a foreign government and conducting business in the U.S. | back 32 alien |
front 33 a contract between the corporation and the state in which the state recognizes the formation of the artificial person that is the corporation and includes | back 33 articles of incorporation |
front 34 Stock owned by individuals or firms who may vote on corporate matters but whose claims on profit and assets are subordinate to the claims of others | back 34 commmon stock |
front 35 Stock owned by individuals or firms who usually do not have voting rights but whose claims on dividends are paid before those of common-stock owners | back 35 preferred stock |
front 36 A distribution of earnings to the stockholders of a corporation | back 36 dividend |
front 37 A legal form listing issues to be decided at a stockholders’ meeting and enabling stockholders to transfer their voting rights to some other individual or individuals | back 37 proxy |
front 38 Who is The top governing body of a corporation, the members of which are elected by the stockholders? | back 38 Board of directions |
front 39 Who is Responsible for setting corporate goals, developing strategic plans to meet those goals, and the firm’s overall operation? | back 39 Board of directors |
front 40 Who are experienced managers or entrepreneurs from outside the corporation who have specific talents? | back 40 outside directors |
front 41 Who are top managers from within the corporation? | back 41 Inside directors |
front 42 Who are The chairman of the board, president, executive vice presidents, corporate secretary, treasurer, and any other top executive appointed by the board? | back 42 Corporate officers |
front 43 Who's responsible to Implement the chosen strategy and direct the work of the corporation, periodically reporting results to the board and stockholders? | back 43 corporate officers |
front 44 Hierarchy of corporate structure? | back 44 Stockholder (owners) ELECT Board of directors APPOINTS officers HIRE employees |
front 45 5 advantages of Corporations | back 45
Limited liability |
front 46 5 disadvantages of corporations | back 46 Difficulty and expense of formation |
front 47  *Good to know for exam | back 47 no data |
front 48 _________________ is A corporation that is taxed as if it were a partnership (income taxed as personal income of stockholders) | back 48 S-corporations |
front 49 2 advantages of S-corporations | back 49 Avoids double taxation of a corporation |
front 50 Which corporation has criteria that: no more than 100 stockholders, one class of outsanding stock, domestic, no partnerships/corporations/nonresident-alien stockholders. | back 50 S-corporation |
front 51 _____________ is a Form of business ownership combining the benefits of a corporation and partnership but avoids some of restrictions and disadvantages | back 51 Limited-liability company (LLC) |
front 52 3 Advantages of Limited-liability company | back 52 Avoids double taxation of a corporation |
front 53 What are the 2 differenes between LLC and S-corp? | back 53 LLCs not restricted to 100 stockholders |
front 54 What are Corporations organized to provide social, educational, religious, or other services, rather than to earn a profit? | back 54 Not-for-profit corporations |
front 55 Examples of Not-for-profit corporations | back 55 Charities, museums, private schools, colleges, and charitable organizations are organized as not-for-profits primarily to ensure limited liability |
front 56 2 ways to have growth from within | back 56 Introducing new products Entering new markets |
front 57 ______________ is the purchase of one corporation by another; essentially the same as an acquisition | back 57 merger |
front 58 _______ ___________ is a situation in which the management and board of directors of the firm targeted for acquisition disapprove of the merger | back 58 hostile takeover |
front 59 _______ ____________ is an offer to purchase the stock of a firm targeted for acquisition at a price just high enough to tempt stockholders to sell their shares | back 59 tender offer |
front 60 ________ _________ is a technique used to gather enough stockholder votes to control a targeted company | back 60 proxy fight |
front 61 3 types of mergers | back 61 Horiztonal Vertical Conglomerate |
front 62 Merger between firms that make and sell similar products | back 62 horizontal |
front 63 Merger between firms that operate at different but related levels of production and marketing a product, where usually one firm is a supplier or customer of the other. | back 63 vertical |
front 64 Merger between firms in completely different industries | back 64 Conglomerate |