Reference no: EM133031722

1. Holden and Monique both own stock in a social media company. While Monique has the ability to elect a board of directors, Holden does not. However, Holden receives dividends regularly while Monique has never received dividends. What type of stock does Holden own?

a. restricted stock
b. ownership stock
c. preferred stock
d. dividend stock
e. common stock

2. Marvin and Troy co-own a ski rental shop in Colorado for profit. This is an example of a

a. cooperative.
b. partnership.
c. sole proprietorship.
d. quasi-public corporation.
e. corporation.

3. Robin is a partner in a natural soap company. She has decided to sell her partnership interest. What is one challenge that Robin will face?

a. It is difficult to place a value on a partner's share of the partnership.
b. She will have to sue her business partners.
c. She must hand-select her successor.
d. Selling her partnership interest will violate the articles of partnership and she will need to pay fines.
e. She is bound by her partners' valuation of her share of the company, and they may deem her value as less than she does.

4. Bianca is a business professor who serves on the board of directors for Power Shake, a nutritional drink company. She brings her unique perspective from the field, and she is qualified, knowledgeable, and independent of the company. Bianca is a(n)

a. corporate officer.
b. outside director.
c. field director.
d. inside director.
e. chief executive officer.

5. Muhammad owns a flower business out of his home. He employs one person to help prepare flower arrangements, but Muhammad manages the business. All of the profit from the business goes to Muhammad and is taxed at an individual rate. His business is likely to be a sole proprietorship.

a. True
b. false