Question 1

Match the term with its definition. Some terms may not be used.
-An interconnected system of relationships with other people

Accepted Answer

A social network is an interconnected system of relationships with other people, often maintained through social media platforms.

Answer: I
 Social capital refers to the resources and connections that individuals or organizations have access to through their social networks.

Answer: A
 An advisory board is a group of individuals who provide non-binding advice and guidance to a company or organization.

Answer: B
 A board of directors is a group of individuals elected by the shareholders of a corporation to oversee and make decisions about the company's management and operations.

Answer: C
 A general partner is a part-owner and manager of a partnership who is personally liable for the partnership's debts and obligations.

Answer: D
 A legal entity is a business organization that has legal standing under the law and is treated as a separate entity from its owners or members.

Answer: E
 A limited liability company is a type of business organization in which the owners have limited liability for the company's debts and obligations.

Answer: F
 A limited partner is a part-owner of a partnership who is not involved in the management of the partnership and has limited liability for its debts and obligations.

Answer: G
 A nonprofit corporation is a type of organization that is formed for purposes other than making a profit, such as charitable or educational purposes.

Answer: H
 A partnership agreement is a legal document that outlines the terms and conditions of a partnership between two or more individuals or entities.

Question 2

Match the terms with their definitions. Some terms may not be used.
-A legal entity formed by two or more co-owners to operate a business for profit

Accepted Answer

Partnership is a legal entity formed by two or more co-owners to operate a business for profit. The other options listed are different types of business structures or components of a business structure.

Question 3

Match the term with its definition. Some terms may not be used.
-The governing body of a corporation, elected by the stockholders

Accepted Answer

The term "board of directors" refers to the governing body of a corporation that is elected by the stockholders.

Question 4

Match the terms with their definitions. Some terms may not be used.
-A document that specifies the size of the board of directors, the duties and responsibilities of directors and officers, the scheduling of regular meetings, voting rights, and restrictions on the transfer of stock

Accepted Answer

Corporate bylaws are the document that specifies the size of the board of directors, the duties and responsibilities of directors and officers, the scheduling of regular meetings, voting rights, and restrictions on the transfer of stock.

Question 5

Match the term with its definition. Some terms may not be used.
-Managers and other key persons who give a company its general direction

Accepted Answer

The managers and other key persons who give a company its general direction are known as the management team.

Question 6

Match the term with its definition. Some terms may not be used.
-A group that serves as an alternative to a board of directors

Accepted Answer

An advisory board serves as an alternative to a board of directors, providing advice and guidance to the organization without the legal responsibility of a board of directors.

Answer: B 
 A board of directors is a group of individuals elected by shareholders to govern a corporation and make major decisions regarding the company's direction and management.

Answer: F 
 A limited partner is an investor in a partnership who has limited liability for the partnership's debts and obligations.

Answer: G 
 A nonprofit corporation is a legal entity that is organized to promote a social cause or to provide a public benefit, such as a charity or educational organization.

Answer: H 
 A partnership agreement is a legal agreement between partners, outlining their roles, responsibilities, and expectations in the partnership.

Answer: I 
 Social capital refers to the resources and benefits that can be gained through social networks and relationships, including trust, social norms, and social support.

Answer: J 
 A social network is a group of individuals who are connected through social relationships, such as friendship, family, or professional networks.

Answer: C and E are not defined in the given text.

Question 7

Match the term with its definition. Some terms may not be used.
-A form of corporation for enterprises established to serve civic, educational, charitable, or religious purposes

Accepted Answer

The answer of Match the term with its definition. Some...

Question 8

Match the term with its definition. Some terms may not be used.
-A partner who has unlimited personal liability

Accepted Answer

The answer of Match the term with its definition. Some...

Question 9

Match the term with its definition. Some terms may not be used.
-A partner who is not active in the management of the partnership and has limited personal liability

Accepted Answer

A limited partner is a partner who is not active in the management of the partnership and has limited personal liability.

Answer: E
 A limited liability company is a legal entity that provides its owners with limited personal liability and is taxed like a partnership.

Answer: C
 A general partner is an active partner who has unlimited personal liability for the debts of the partnership.

Answer: H
 A partnership agreement is a legal document that outlines the terms and conditions of a partnership.

Answer: I
 Social capital refers to the networks of relationships among people who live and work in a particular society, enabling that society to function effectively.

Answer: J
 A social network is a group of individuals who have a social relationship with each other, such as friends or business associates.

The following terms were not used:
- Advisory board
- Board of directors
- Nonprofit corporation

Question 10

Match the term with its definition. Some terms may not be used.
-A situation in which the courts conclude that incorporation has been used to perpetrate a fraud

Accepted Answer

Piercing the corporate veil is a situation in which the courts conclude that incorporation has been used to perpetrate a fraud.

Question 11

Match the term with its definition. Some terms may not be used.
-An organizational relationship that links two or more independent business entities in a common endeavor

Accepted Answer

A strategic alliance is an organizational relationship that links two or more independent business entities in a common endeavor. None of the other terms fit this definition.

Question 12

Match the terms with their definitions. Some terms may not be used.
-A type of corporation that offers limited liability to its owners and passes taxable income or losses on to the stockholders

Accepted Answer

An S corporation is a type of corporation that offers limited liability to its owners and passes taxable income or losses on to the stockholders.

Question 13

Match the term with its definition. Some terms may not be used.
-The right of stockholders to buy new shares of stock before they are offered to the public

Accepted Answer

Pre-emptive right is the right of stockholders to buy new shares of stock before they are offered to the public. None of the other terms in the list match this definition.

Question 14

Match the terms with their definitions. Some terms may not be used.
-A partnership with at least one general partner and one or more limited partners

Accepted Answer

A limited partnership is a partnership structure that includes one or more general partners who manage the business and have unlimited liability, and one or more limited partners who contribute capital but have limited liability.

Question 15

Match the term with its definition. Some terms may not be used.
-The advantage created by an individual's connections with other people

Accepted Answer

Social capital is the advantage created by an individual's connections with other people.

Question 16

Match the term with its definition. Some terms may not be used.
-A form of organization in which owners have limited liability but pay personal income taxes on business profits

Accepted Answer

A limited liability company (LLC) is a form of organization in which owners have limited liability but pay personal income taxes on business profits.

Answer: A
 An advisory board is a group of experts who carefully review a company's policies and strategies and provide advice or suggestions for improvement.

Answer: F
 A limited partner is a partner in a partnership who has limited liability and is not involved in the day-to-day management of the business.

Answer: G
 A nonprofit corporation is a legal entity that is organized and operated for purposes other than making a profit, such as charitable, educational, or religious purposes.

Answer: H
 A partnership agreement is a legal document that outlines the terms and conditions of a partnership, including the responsibilities of each partner and how profits and losses will be shared.

Answer: I
 Social capital refers to the networks of relationships among individuals, organizations, and communities that can be used to facilitate cooperation and collaboration.

Answer: J
 A social network is a group of individuals who are connected to each other through social relationships, such as friendship, family, or work.

Question 17

Match the terms with their definitions. Some terms may not be used.
-Liability on the part of an owner that extends beyond the owner's investment in the business

Accepted Answer

Unlimited liability refers to the legal responsibility for all debts and obligations of a business. This means that the owner's personal assets can be used to pay off any debts or legal claims against the business.

Question 18

Match the term with its definition. Some terms may not be used.
-A business organization that is recognized by the law as having a separate existence

Accepted Answer

A legal entity is a business organization that is recognized by the law as having a separate existence.

Answer: E
 A limited liability company is a type of legal entity that combines aspects of a partnership and a corporation.

Answer: F
 A limited partner is a partner in a partnership who is not involved in the daily operations of the business and has limited liability for the partnership's debts.

Answer: G
 A nonprofit corporation is a type of legal entity that is formed for purposes other than making a profit, such as charitable or educational purposes.

Answer: H
 A partnership agreement is a legal document that outlines the terms and conditions of a partnership, including how profits and losses will be shared and how decisions will be made.

Answer: I
 Social capital refers to the value that individuals and organizations derive from their social networks and relationships.

Answer: J
 A social network refers to a group of individuals or organizations that are connected to each other through social relationships such as friendships, acquaintances, or business relationships. It can also refer to online platforms that facilitate these connections.

Not used: A, B, C.

Question 19

Match the terms with their definitions. Some terms may not be used.
-A business owned by one person, who bears unlimited liability for the enterprise

Accepted Answer

A sole proprietorship is a business owned by one person, who bears unlimited liability for the enterprise.

Question 20

Match the term with its definition. Some terms may not be used.
-A business organization that exists as a legal entity and provides limited liability to its owners

Accepted Answer

A corporation is a business organization that is legally separate from its owners and provides limited liability protection to its owners.

Answer: B
 A limited partnership is a business organization in which there are at least one general partner who manages the business and has unlimited liability and limited partners who only invest in the business and have limited liability.

Answer: C
 A management team refers to a group of individuals who are responsible for managing and making key decisions for a business organization.

Answer: D
 The organizational test is a legal test used to determine whether a business entity qualifies as a partnership or a corporation for tax purposes.

Answer: E
 Piercing the corporate veil refers to a legal action where a court disregards the separation between a corporation and its owners and holds the owners personally liable for the corporation's debts or actions.

Answer: F
 Preemptive right refers to a shareholder's right to buy new shares issued by a corporation before they are offered to the public in order to maintain their percentage of ownership.

Answer: G
 Reciprocation refers to the exchange of goods or services between individuals or businesses in order to gain mutual benefits.

Answer: H
 Social capital refers to the relationships and networks that individuals or businesses have that can help them to achieve their goals or objectives.

Answer: I
 A strategic alliance is a business relationship where two or more businesses work together to achieve a common goal or objective.

Quiz 8: The Organizational Plan: Teams, Legal Structures, Alliances, and Directors

Match the term with its definition. Some terms may not be used. -An interconnected system of relationships with other people

Match the terms with their definitions. Some terms may not be used. -A legal entity formed by two or more co-owners to operate a business for profit

Match the term with its definition. Some terms may not be used. -The governing body of a corporation, elected by the stockholders

Match the terms with their definitions. Some terms may not be used. -A document that specifies the size of the board of directors, the duties and responsibilities of directors and officers, the scheduling of regular meetings, voting rights, and restrictions on the transfer of stock

Match the term with its definition. Some terms may not be used. -Managers and other key persons who give a company its general direction

Match the term with its definition. Some terms may not be used. -A group that serves as an alternative to a board of directors

Match the term with its definition. Some terms may not be used. -A form of corporation for enterprises established to serve civic, educational, charitable, or religious purposes

Match the term with its definition. Some terms may not be used. -A partner who has unlimited personal liability

Match the term with its definition. Some terms may not be used. -A partner who is not active in the management of the partnership and has limited personal liability

Match the term with its definition. Some terms may not be used. -A situation in which the courts conclude that incorporation has been used to perpetrate a fraud

Match the term with its definition. Some terms may not be used. -An organizational relationship that links two or more independent business entities in a common endeavor

Match the terms with their definitions. Some terms may not be used. -A type of corporation that offers limited liability to its owners and passes taxable income or losses on to the stockholders

Match the term with its definition. Some terms may not be used. -The right of stockholders to buy new shares of stock before they are offered to the public

Match the terms with their definitions. Some terms may not be used. -A partnership with at least one general partner and one or more limited partners

Match the term with its definition. Some terms may not be used. -The advantage created by an individual's connections with other people

Match the term with its definition. Some terms may not be used. -A form of organization in which owners have limited liability but pay personal income taxes on business profits

Match the terms with their definitions. Some terms may not be used. -Liability on the part of an owner that extends beyond the owner's investment in the business

Match the term with its definition. Some terms may not be used. -A business organization that is recognized by the law as having a separate existence

Match the terms with their definitions. Some terms may not be used. -A business owned by one person, who bears unlimited liability for the enterprise

Match the term with its definition. Some terms may not be used. -A business organization that exists as a legal entity and provides limited liability to its owners