Page 169 - Business Principles and Management

C HAPTER 6 A SSESSMENT

DETERMINE THE BEST ANSWER

13. Ownership of a corporation is divided into parts called
a. shares
b. corporation parts
c. memberships
d. partnerships

14. Stockholders’ basic rights include the right to
a. transfer ownership
b. vote for members of the board
c. receive dividends
d. all of the above
15. A business owned by a group of people and authorized by the state in
which it is located to act as though it were a single person, separate
from its owners, is called a
a. corporation
b. joint venture
c. virtual company
d. subcorporation

16. A business that is important to society but lacks the profit potential
to attract private investors and is often operated by local, state, or
federal government is called a
a. not-for-profit corporation
b. quasi-public corporation
c. nano-public corporation
d. Subchapter S corporation

17. A corporation must include in its name
a. the purpose of the business
b. the major owners’ names
c. the state in which the company was founded
d. an indication that the company is a corporation

18. A network of companies that form alliances among themselves as
needed to take advantage of fast-changing market conditions is a
a. corporation
b. joint venture
c. virtual company
d. subcorporation

19. If a corporation wants to enter into a different business, it
a. must close and re-form
b. can do this at any time
c. must change its charter or file a new one
d. must change its name

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