237. Jim is one of several general partners who own Beef ‘N Beer, a small chain of restaurants
located in Missouri and Illinois. Jim is interested in converting the partnership into a master
limited partnership. If he convinces other partners to go along with his idea, Beef ‘N Beer will:
238. Kristen and her brothers and sisters set up a design firm called Houses by Design LLP.
Although key business functions are centralized, each sibling is a licensed architect that designs,
builds, and installs residential and commercial buildings for his/her own clients. Unfortunately, a
design created and installed for one of their clients resulted in water damage to the basement of
the client’s new home. The limited liability partnership:
239. A(n) ___________________ is a state-chartered legal entity with authority to act and to
have liability separate from its owners.
240. An owner of a corporation is known as a(n):
241. Which of the following statements about the operation of a corporation is correct?
242. The form of business ownership best suited to raising large amounts of money for
expansion is the:
243. Which of the following is an advantage of the corporate form of business when compared
to sole proprietorships and partnerships?
244. Compared to partnerships and sole proprietorships, a major advantage of the C
(conventional) corporation as a form of business ownership is that it:
245. Which of the following is normally considered a disadvantage of the corporate form of
business?
246. The board of directors for a corporation is elected by its:
247. A separation between ownership and management is most likely to occur in a:
248. One disadvantage of _________ is the initial cost of formation.
249. The form of business ownership that usually requires the most detailed record keeping is
the:
250. A major advantage of S corporations is that they:
251. One reason many companies do not organize themselves as an S corporation is that this
form of business:
252. To qualify as an S corporation, a company must:
253. The income generated by S corporations:
254. _____________ are companies that are similar to S corporations but are not restricted with
similar eligibility requirements.
255. One disadvantage of a limited liability company is that it:
256. One reason limited liability companies have become so popular is that they:
257. Earnings of C corporations can be:
258. Which of the following is an attractive benefit of a corporation?
259. The reason a professional such as a lawyer or doctor would incorporate his/her business
is:
260. Which of the following statements about S corporations is most accurate?
261. The organizational structure of a corporation permits:
262. Which of the following statements is the most accurate? A foreign corporation:
263. The S corporation is likely to be less popular in the future because:
264. Compared to the C corporation, the limited liability company is an attractive form of
business ownership because:
265. Double taxation means:
266. Trevor and Tyler own all the stock in the Double T Corporation. The stock of this
corporation is not sold to the general public. Trevor and Tyler own a:
267. Tess and Tijuana have considered starting their own business but are concerned about
the possibility of losing their personal assets if the business fails. One way for Tess and Tijuana
to avoid this risk would be to organize their firm as a(n):
268. Maria recently purchased 100 shares of stock in Idle Time Gaming, Inc. Maria is a(n)
______________ of this company.
269. Dane is a stockholder in SmallWorld, Inc., a C corporation that manufactures amusement
park rides. The company recently lost a major court decision and will probably be forced into
bankruptcy. In fact, the damages awarded are so great that, even if all company assets are sold
and the proceeds are used to pay its debts, SmallWorld is likely to still owe money to its
creditors. If SmallWorld goes bankrupt, Dane and the other stockholders will: