Fundamentals of Business

QUESTION 6

1. Susan has been given shares of stock in the corporation where she works because the corporation hopes that by giving her an ownership interest in the business she will be

		alienated
		be able to tolerate her job
		motivated
		manipulated

QUESTION 7

1. A corporation whose stock can be purchased by anyone and is traded in stock markets is know as a(n)

		sole proprietorship.
		S-corporation.
		closed corporation.
		open corporation.

QUESTION 8

1. Karen Howard loves to cook and receives praise whenever she prepares a meal for someone. Encouraged by these compliments and eager to put her culinary talents to good use, Karen decides to open a small neighborhood restaurant. Since she plans to maintain complete control of the business and she is not concerned about limited liability because she has nothing, she will most likely organize it as a

		limited partnership
		franchise
		sole proprietorship
		general partnership

QUESTION 9

1. Which of the following is not an advantage of a sole proprietorship?

		It is easy to form and easy to dissolve.
		It has unlimited liability.
		Profits are taxed as individual income.
		The owner keeps all of the profits.

QUESTION 10

1. Amy owns 100 shares of General Electric preferred stock. She wants to attend the annual stockholder meeting to cast her vote on company issues. Based on your knowledge from school, you caution Amy that

		people with fewer than 1,000 shares of stock cannot vote.
		stockholders are not allowed to attend the annual meetings.
		(most) preferred stock does not have voting rights.
		only institutional investors are allowed to attend the meetings.