Chapter 5 - =>yes they can 13) Does the act of...

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Chapter 5 Questionnaire 1) Why is there a need of Joint Venture/Consortia? => 2) What are the two things that Entrepreneurs have to focus on to open a company? => Legal organization, Management Organization 3) Does the firm remain proprietorship if the firm expands and hires more people? =>yes 4) Can the assets of a stockholder be attached to settle a claim or debt of the corporation? =>No 5) What are the two types of corporations? =>Open, Public 6) Which is the simplest form of legal structure? =>Proprietorship 7) Who makes all the decisions in a proprietorship? =>Owner 8) What happens to proprietorship if the owner dies? =>Company dies 9) What about partnership liability? => 10) Who are general partners and who are limited partners? => 11) What happens to a partnership if one of the partners dies? =>either its terminated or other partner can buy it 12) Do the General Partners get salaries?
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Unformatted text preview: =>yes they can 13) Does the act of one partner undo partnerships bindings? =>No 14) How is a corporation created? Chapter 5 Questionnaire =>by applying to the office of state of secretary. 15) What is the liability of corporations in case of claims and losses? =>only investments attached to the firm 16) What is one disadvantage of corporation? =>Double taxation 17) Can you show how a corporation has an advantage over proprietorship? =>Uncle Fed situation 18) What is subchapter S: corporation? =>avoids the double taxation 19) What are the two inherent disadvantages? =>Reduce the control 20) What are the seven major considerations to choose a particular legal structure? =>1) Taxation. 2) Cost to start the company. 3) Liability. 4) Flexibility. 5) Attraction of capital 6) _______ 7) __________...
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This note was uploaded on 11/11/2009 for the course CEIE 463 taught by Professor Bhargava during the Spring '09 term at George Mason.

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Chapter 5 - =>yes they can 13) Does the act of...

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