Page 162 - Business Principles and Management

Chapter 6 • Corporate Forms of Business Ownership

Is corporate ownership the
best form of ownership for a
theme park, given liability and
transfer-of-ownership issues?

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6.2 Assessment

UNDERSTAND MANAGEMENT CONCEPTS
Circle the best answer for each of the following questions.
1. A corporation that does not offer its stock to the public for sale
is called a(n)
a. close corporation
b. open corporation
c. private corporation
d. none of the above
2. The advantages of a corporate form of ownership include all
of the following except
a. double taxation
b. available sources of capital
c. limited liability
d. permanency of existence

THINK CRITICALLY
Answer the following questions as completely as possible.
3. List the major advantages of the corporate form of business.
4. List the major disadvantages of the corporate
form of business.

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