Question 1

What are the differences between a limited liability partnership and a limited liability company?

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The answer of What are the differences between a limited...

Question 2

Assume that you started a new business as a sole proprietor where you developed an app for smartphones and tablets. The app you developed has now become very popular. You now plan to develop more apps but want to limit your personal liability. Discuss why you would want to form a new business and what type of business entity you would select.

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Question 3

State laws that govern the sale or transfer of securities within the state (intrastate) are known as ________ laws.

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Question 4

The ______ is a federal agency that adopts rules that must be followed by corporations
and other businesses that sell securities through any national exchange or through any means of interstate commerce.

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Question 5

The owner of a sole proprietorship in itself is fully _____ for any business debts.

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Question 6

The board of ______of a business corporation have general management power over the corporation and are responsible for setting general business policies.

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Question 7

In response to corporate abuse by Enron and other corporations, Congress enacted the ______________Act of 2002 that established the Public Company Accounting Oversight Board, which requires registration of auditors of public companies and imposes regulations regarding accounting methods and financial disclosures.

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Question 8

The ______ are the internal rules and regulations for a corporation.

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Question 9

Explain the roles of directors, officers, and shareholders in a corporation.

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Question 10

If you were starting a new business entity with a relative for a new fast food franchise, which business entity would you select? There will be two owners of the business and you hope to be able to open more fast food franchises in the future, but for now you are planning to start just one franchise. Discuss the advantages and disadvantages of each business entity.

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Question 11

A business owned by two or more persons who co-own a business for profit where each partner is individually liable for all partnership debts is a ___________ partnership.

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Question 12

Unlike a general partnership, not all of the co-owners of a limited partnership are involved in the ______ and operation of the business.

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Question 13

What are the factors considered by a court on whether the court should pierce the corporate veil?

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Question 14

A ________ is a type of business organization that provides limited liability to its owners that is similar to a corporation but not taxed as a corporation.

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Question 15

Match between columns
                        Premises: General partnership
Limited liability company
Limited partnership
Limited liability partnership
Nonprofit corporation
Business corporation
Sole proprietorship

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Question 16

Match between columns
                        Premises: Shareholders
Officers
Board of directors
Bylaws
Dividends

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Quiz 11: The Business Environment: Agency, Employment, Business Organizations, and Bankruptcy Laws