Solved

Match the Term with Its Definition

Question 106

Matching

Match the term with its definition. Some terms may not be used.

Premises:
A business organization that exists as a legal entity and provides limited liability to its owners
An interconnected system of relationships with other people
A form of organization in which owners have limited liability but pay personal income taxes on business profits
The right of stockholders to buy new shares of stock before they are offered to the public
A group that serves as an alternative to a board of directors
Managers and other key persons who give a company its general direction
An organizational relationship that links two or more independent business entities in a common endeavor
A document specifying the number of shares owned by a stockholder
Verification of whether a nonprofit organization is staying true to its stated purpose
A document that states explicitly the rights and duties of partners
A partner who is not active in the management of the partnership and has limited personal liability
A powerful sense of obligation to repay in kind what another has done for or provided to us
The advantage created by an individual's connections with other people
A partner who has unlimited personal liability
A business organization that is recognized by the law as having a separate existence
A situation in which the courts conclude that incorporation has been used to perpetrate a fraud
The governing body of a corporation, elected by the stockholders
A form of corporation for enterprises established to serve civic, educational, charitable, or religious purposes
Responses:
limited liability company
partnership agreement
strategic alliance
social network
nonprofit corporation
reciprocation
corporation
social capital
advisory board
organizational test
piercing the corporate veil
preemptive right
management team
stock certificate
board of directors
legal entity
limited partner
general partner

Correct Answer:

A business organization that exists as a legal entity and provides limited liability to its owners
An interconnected system of relationships with other people
A form of organization in which owners have limited liability but pay personal income taxes on business profits
The right of stockholders to buy new shares of stock before they are offered to the public
A group that serves as an alternative to a board of directors
Managers and other key persons who give a company its general direction
An organizational relationship that links two or more independent business entities in a common endeavor
A document specifying the number of shares owned by a stockholder
Verification of whether a nonprofit organization is staying true to its stated purpose
A document that states explicitly the rights and duties of partners
A partner who is not active in the management of the partnership and has limited personal liability
A powerful sense of obligation to repay in kind what another has done for or provided to us
The advantage created by an individual's connections with other people
A partner who has unlimited personal liability
A business organization that is recognized by the law as having a separate existence
A situation in which the courts conclude that incorporation has been used to perpetrate a fraud
The governing body of a corporation, elected by the stockholders
A form of corporation for enterprises established to serve civic, educational, charitable, or religious purposes
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