Match the term with its definition.
-A business organization that exists as a legal entity and provides limited liability to its owners

Question

Quizplus · 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.

Match the Term with Its Definition