Question 1

Match the term with its definition.
-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.

Answer: C 
 C corporation is a legal entity formed by one or more shareholders with a state-chartered legal existence separate from its owners.

Answer: D
 Corporate charter is a legal document that establishes a corporation and specifies its purpose, governance, and stock structure.

Answer: I 
 Unlimited liability is a term used to describe the legal responsibility of each owner for all debts and damages incurred by the business.

Answer: H 
 S corporation is a legal entity that provides the limited liability of a corporation but is taxed like a partnership.

Answer: E 
 Joint and several liability is a term used to describe the legal responsibility of each partner for all debts and damages incurred by the partnership.

Answer: G 
 Professional corporation is a special type of corporation formed by professionals such as doctors, lawyers, and accountants, which provides limited liability protection for the owners.

Answer: A 
 Advisory board is a group of external individuals who provide guidance and advice to a company, but do not have legal authority or ownership in the business.

Answer: B 
 B corporation is a type of for-profit corporation that is required to meet social and environmental standards in addition to generating profit for shareholders.

Question 2

Match the term with its definition.
-An interconnected system of relationships with other people

Accepted Answer

Social network is an interconnected system of relationships with other people.

Question 3

Match the term with its definition.
-A partner in a limited partnership who is not active in the management of the partnership and has limited personal liability

Accepted Answer

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

Answer: B
 A general partner is a partner in a limited partnership who is active in the management of the partnership and has unlimited personal liability.

Answer: D
 A limited liability company is a type of business entity that combines the liability protection of a corporation with the tax benefits of a partnership.

Answer: G
 A partnership agreement is a written agreement between partners in a partnership that outlines the terms and conditions of the partnership.

Answer: H
 A sole proprietorship is a type of business in which an individual owns and operates the business and is personally liable for its debts and obligations.

Answer: F
 A nonprofit corporation is a type of corporation that is organized for a purpose other than generating a profit, such as charitable, educational, or religious purposes.

Answer: A
 A board of directors is a group of individuals who are elected by shareholders to govern and set the policies of a corporation.

Answer: C
 A legal entity is a type of organization that is recognized by law as having its own legal rights and liabilities, separate from those of its owners or members.

Answer: I
 A social network is a platform or website that allows users to create and share content or to participate in social networking.

Question 4

Match the term with its definition.
-A form of corporation that creates a positive social or environmental impact while maintaining high standards of transparency and accountability

Accepted Answer

A B corporation is a form of corporation that creates a positive social or environmental impact while maintaining high standards of transparency and accountability.

Question 5

Match the term with its definition.
-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.

Question 6

Match the term with its definition.
-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 (Subchapter S corporation) is designed to offer limited liability to its owners while allowing the income or losses of the corporation to be passed through to its stockholders for tax purposes, avoiding double taxation.

Question 7

Match the term with its definition.
-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.

Question 8

Match the term with its definition.
-A business organization that is recognized by the law as having a separate legal existence

Accepted Answer

A legal entity is a business organization that is recognized by the law as having a separate legal existence, separate from its owners or shareholders.

Option A: Board of directors is a group of individuals elected to represent shareholders and oversee the management of a company.
Option B: A general partner is a partner in a partnership who has unlimited liability for the debts and obligations of the partnership.
Option D: A limited liability company (LLC) is a type of legal structure that combines the liability protection of a corporation with the simplicity and tax flexibility of a partnership.
Option E: Limited partners are partners in a partnership who have limited liability for the debts and obligations of the partnership.
Option F: A nonprofit corporation is a type of legal structure that is created for charitable, educational, religious, literary, or scientific purposes and is exempt from certain taxes.
Option G: A partnership agreement is a legal contract between partners in a partnership that outlines the terms and conditions of the partnership.
Option H: A sole proprietorship is a type of business owned and operated by a single individual who is personally liable for the debts and obligations of the business.
Option I: A social network is an online platform that connects people based on common interests or relationships.

Question 9

Match the term with its definition.
-A partnership with at least one general partner and one or more limited partners

Accepted Answer

A limited partnership is a type of business partnership that has at least one general partner who manages the business and one or more limited partners who do not participate in management and are only liable for the partnership's debts to the extent of their investment.

Answer: F 
 A preemptive right is a shareholder's right to buy new shares in a company before they are offered to the public, allowing the shareholder to maintain their proportional ownership in the company.

Answer: H 
 Social capital refers to the value that is created by social networks, including relationships, trust, and cooperation, which can be used for personal or professional purposes.

Answer: I 
 A strategic alliance is a formal agreement between two or more companies to work together towards a common goal or to pursue a specific opportunity, while maintaining their separate identities and autonomy.

Question 10

Match the term with its definition.
-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 actions of a business, which extends beyond the investment made by the owner. This means that the owner's personal assets could be used to pay off any business debts or legal settlements, making them personally liable for the business's liabilities.

Question 11

Match the term with its definition.
-Managers and other key persons who give a company its general direction

Accepted Answer

The term "management team" refers to the group of people who are responsible for guiding and directing the overall direction of a company. This group may include top-level executives, board members, and other key individuals who play a crucial role in shaping the organization's strategy and goals.

Question 12

Match the term with its definition.
-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 is responsible for all aspects of the business and has unlimited liability for the enterprise.

Question 13

Match the term with its definition.
-The right of stockholders to buy new shares of stock before they are offered to the public

Accepted Answer

Preemptive right is the right of existing shareholders to buy new shares of stock before they are offered to the public.

Question 14

Match the term with its definition.
-A situation in which a court concludes that incorporation has been used to perpetrate a fraud, skirt a law, or commit some wrongful act, and it removes liability protection from the corporate entity

Accepted Answer

Piercing the corporate veil is a legal doctrine in which a court removes liability protection from a corporate entity if it was used to perpetrate fraud or commit wrongful acts.
Note: The other choices are not related to the definition provided.

Question 15

Match the term with its definition.
-A partner in a limited partnership who has unlimited personal liability

Accepted Answer

A general partner is a partner in a limited partnership who has unlimited personal liability.

Answer: D
 A limited liability company is a business structure that combines the liability protection of a corporation with the simplicity of a partnership.

Answer: E
 Limited partners are partners in a limited partnership who have limited liability and are not involved in the management of the business.

Answer: H
 A sole proprietorship is a business owned and operated by one person with no legal distinction between the business and the owner.

Answer: G
 A partnership agreement is a legal document that outlines the terms of a partnership and the responsibilities of each partner.

Answer: F
 A nonprofit corporation is a type of corporation organized for charitable, educational, religious, or scientific purposes.

Answer: C
 A legal entity is a business or organization that is recognized by law and has its own legal rights and liabilities.

Answer: A
 A board of directors is a group of individuals who are elected by shareholders to oversee the management of a corporation.

Answer: I
 A social network is an online platform or community that allows individuals to connect and interact with each other.

Question 16

Match the term with its definition.
-A form of corporation for enterprises established to serve civic, educational, charitable, or religious purposes; not for generation of profits

Accepted Answer

A nonprofit corporation is established to serve civic, educational, charitable, or religious purposes, and not for the generation of profits.

Question 17

Match the term with its definition.
-A form of organization in which owners have limited liability but pay personal income taxes on business profits

Accepted Answer

Limited Liability Company is a form of organization in which owners have limited liability but pay personal income taxes on business profits.

Question 18

Match the term with its definition.
-The liability of each partner resulting from any one partner's ability to legally bind the other partners

Accepted Answer

Joint and several liability refers to the legal responsibility of each partner in a partnership to be liable for the actions of the other partners, which means that an individual partner can be held responsible for the entire partnership's debts and obligations.

Question 19

Match the term with its definition.
-The governing body of a corporation, elected by the stockholders

Accepted Answer

The board of directors is the governing body of a corporation, elected by the stockholders.

B: A general partner is a partner who has unlimited liability in a partnership.

C: A legal entity is an organization that has legal rights and responsibilities, such as a corporation.

D: A limited liability company is a type of business structure that provides limited liability protection to its owners.

E: Limited partners are partners in a partnership who have limited liability.

F: A nonprofit corporation is a type of corporation that is organized for a nonprofit purpose.

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

H: A sole proprietorship is a type of business structure in which the owner has unlimited liability.

I: A social network is a digital platform that allows users to connect and share information with each other.

Question 20

Match the term with its definition.
-A document that establishes a corporation's existence

Accepted Answer

A corporate charter is a legal document that outlines a corporation's basic information, such as its purpose, structure, and ownership. It is also known as articles of incorporation or certificate of incorporation.

Answer: I
 Unlimited liability refers to the legal obligation of a business owner to be personally responsible for all of the debts and liabilities of their business. This means that if the business cannot pay its debts, the owner's personal assets can be used to satisfy the debt.

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

Match the term with its definition. -A legal entity formed by two or more co-owners to operate a business for profit

Match the term with its definition. -An interconnected system of relationships with other people

Match the term with its definition. -A partner in a limited partnership who is not active in the management of the partnership and has limited personal liability

Match the term with its definition. -A form of corporation that creates a positive social or environmental impact while maintaining high standards of transparency and accountability

Match the term with its definition. -An organizational relationship that links two or more independent business entities in a common endeavor

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

Match the term with its definition. -A business organization that is recognized by the law as having a separate legal existence

Match the term with its definition. -A partnership with at least one general partner and one or more limited partners

Match the term with its definition. -Liability on the part of an owner that extends beyond the owner's investment in the business

Match the term with its definition. -Managers and other key persons who give a company its general direction

Match the term with its definition. -A business owned by one person, who bears unlimited liability for the enterprise.

Match the term with its definition. -The right of stockholders to buy new shares of stock before they are offered to the public

Match the term with its definition. -A situation in which a court concludes that incorporation has been used to perpetrate a fraud, skirt a law, or commit some wrongful act, and it removes liability protection from the corporate entity

Match the term with its definition. -A partner in a limited partnership who has unlimited personal liability

Match the term with its definition. -A form of corporation for enterprises established to serve civic, educational, charitable, or religious purposes; not for generation of profits

Match the term with its definition. -A form of organization in which owners have limited liability but pay personal income taxes on business profits

Match the term with its definition. -The liability of each partner resulting from any one partner's ability to legally bind the other partners

Match the term with its definition. -The governing body of a corporation, elected by the stockholders

Match the term with its definition. -A document that establishes a corporation's existence