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POB Obj2.1

Sample questions for POB 2.01

QuestionAnswer
1. Tami opened an auto body shop after repairing a couple of cars to the high satisfaction of customers. She has experienced which ADVANTAGE over a corporation? Ease of formation
2. Tami wants to invest money in shares of stock. She would have to pay taxes on her earnings twice. Which is an ADVANTAGE of a sole proprietorship over a corporation? Single taxation
3. Since Jane’s corporation has become so popular, she has decided to allow other businesses to sell her products. This is an example of what type of business? Franchise
4. Hank has ownership, even without liability over his initial investment, along with George for a local business. This is an example of what type of business ownership? Partnership
5. Carlos ignores minor decisions in his business even though his name is on the sign as one of the owners.This is an example of what type of business ownership? Partnership
6. Tami prefers working alone in her auto body shop and being in control of the daily activities. This type of business ownership ADVANTAGE over corporation is: control of decisions.
7. Chun purchased 150 shares of stock in the Panasonic Company. How many votes will she have at the next stockholder’s meeting? 150
8. Mary owns stock for several companies, which she plans to pass ownership to her grandchildren. She chose this form of ownership over sole proprietorship because of the ADVANTAGE of: potential of unlimited life.
9. Both Bob and Jeri contributed to the expansion of their business to sell more brands of tires. They both experienced which ADVANTAGE of a partnership over a sole proprietorship? More capital available
10. Even though a company may sell shares of stock, it relies on a central body of people for financial directions. This is an example of what type of business? Corporation
11. Several small businesses that sell organic foods have joined together to increase their chances to pay lower prices for inventory. This is an example of what type of business? Cooperative
12. Todd decided to form a corporation instead of a sole proprietorship because of which ADVANTAGE listed below? Limited liability
Created by: denise.stevens5
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