Ch 4/5 retake

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. Doreen owns a small shoe repair company and is a sole proprietor. This means that she is personally responsible for payment all of the debts.

• True

• False

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. Corporations pay a higher tax rate on income of less than $75,000 than does a sole proprietorship.

• True

• False

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. Limited partners do not participate in the management of the business.

• True

• False

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. Partnerships are used more frequently than all other forms of business.

• True

• False

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. The assets and liabilities of a corporation are separate from its owners.

• True

• False

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. An S corporation is taxed just like any other corporation.

• True

• False

TRUE/FALSE - Write 'T' if the statement is true and 'F' if the statement is false. Corporations account for the majority of all U.S. sales and income.

• True

• False

As a former CEO of a large consumer products company, Tony was a natural choice for Donner & Blitzen, a soap manufacturer that was looking for someone to help oversee the general operation of the corporation and set the long-range objectives of the company. He would need to be elected by the stockholders and would help hire corporate officers. Tony was most likely being considered for the company’s board of directors.

• True

• False

A strategic alliance occurs when one company purchases another company by buying most of its stock.

• True

• False

Most tender offers of corporate raiders are hostile.

• True

• False