Assignment:
1. Ownership in a corporation
- is difficult to transfer.
- is more easily transferable than ownership in other forms of organization.
- is transferred in much the same way as stock in a partnership.
- noticeably affects the operation of the business.
2. In a limited partnership, which of the following remains bound by all debts of the business?
- Limited partner
- Special partner
- Partner with the greatest capital investment
- General partner
3. To be eligible to be an S corporation, a firm must
- have more than 75 stockholders.
- have no nonresident alien stockholders.
- have two or more classes of stock outstanding
- be international in scope.
4. Lauren Hassell, a partner in Jales & Jales Bonding Company, manages its day-to-day operations. She is considered to be a _____partner.
- directing
- general
- limited
- operating
5. Louise Piper plans to sell stock in her company in order to raise capital. One of the benefits of issuing stock as a source of funds is
- reduced risk to the enterprise
- sharing success potential.
- confidentiality.
- periodic reporting requirements.
6. Prospective entrepreneurs will usually acquire their initial financing from
- venture capitalists.
- personal savings
- wealthy individuals.
- the securities market.
7. A primary source of financing for most smaller companies is
- trade credit
- long-term bank loans.
- mortgages.
- asset-based notes.
8. The traditional way to locate business angels is through
- contact with business associates, accountants, and lawyers.
- formal angel networks or clubs.
- advertisements in magazines.
- contact with friends and relatives.
9. The federal government provides funds to small businesses through
- venture capital companies.
- the Small Business Administration.
- business angels.
- the Securities and Exchange Commission.