MANA 3325-Exam 2-Chapter
5,6,11,12,13-UTA Spring
sole proprietorship - correct answer ✔✔a business owned and managed by one individual; the business
and the owner are one and the same in the eyes of the laws
unlimited personal liability - correct answer ✔✔a situation in which the sole proprietor is personally
liable for all of the business's debts
partnership - correct answer ✔✔an association of two or more people who co-own a business for the
purpose of making a profit
partnership agreement - correct answer ✔✔a document that states in writing the terms under which the
partners agree to operate the partnership and that protects each partner's interest in the business
general partners - correct answer ✔✔partners who share in owning, operating, and managing a business
and who have unlimited personal liability for the partnership's debts
limited partners - correct answer ✔✔partners who make financial investments in a partnership, who do
not take an active role in managing a business, and whose liability for the partnership's debts is limited
to the amount they have invested
silent partners - correct answer ✔✔limited partners who are not active in a business but generally are
known to be members of the partnership
dormant partners - correct answer ✔✔limited partners who are neither active in a business nor
generally known to be associated with the business
limited partnership - correct answer ✔✔a partnership composed of at least one general partner and at
least one limited partner
, limited liability partnership (LLP) - correct answer ✔✔a special type of limited partnership in which all
partners, who in many states must be professionals, are limited partners
corporation - correct answer ✔✔a separate legal entity apart from its owners that receives the right to
exist from the state in which it is incorporated
domestic corporation - correct answer ✔✔a corporation doing business in the state in which it is
incorporated
foreign corporation - correct answer ✔✔a corporation doing business in a state other than the one in
which it is incorporated
alien corporation - correct answer ✔✔a corporation formed in another country but doing business in the
United States
closely held corporation - correct answer ✔✔a corporation whose shares are controlled by a relatively
small number of people, often family members, relatives, friends, or employees
publicly held corporation - correct answer ✔✔a corporation that has a large number of shareholders and
who stock usually is traded on one of the large stock exchanges
preemptive rights - correct answer ✔✔the rights of a corporation's original investors to purchase enough
shares of future stock issues to maintain their original percentage of ownership in the company
treasury stock - correct answer ✔✔the shares of its own stock that a corporation owns
right of first refusal - correct answer ✔✔a provision requiring shareholders who want to sell their stock
to offer it first to the corporation
bylaws - correct answer ✔✔the rules and regulations the officers and directors establish for a
corporation's internal management and operation
5,6,11,12,13-UTA Spring
sole proprietorship - correct answer ✔✔a business owned and managed by one individual; the business
and the owner are one and the same in the eyes of the laws
unlimited personal liability - correct answer ✔✔a situation in which the sole proprietor is personally
liable for all of the business's debts
partnership - correct answer ✔✔an association of two or more people who co-own a business for the
purpose of making a profit
partnership agreement - correct answer ✔✔a document that states in writing the terms under which the
partners agree to operate the partnership and that protects each partner's interest in the business
general partners - correct answer ✔✔partners who share in owning, operating, and managing a business
and who have unlimited personal liability for the partnership's debts
limited partners - correct answer ✔✔partners who make financial investments in a partnership, who do
not take an active role in managing a business, and whose liability for the partnership's debts is limited
to the amount they have invested
silent partners - correct answer ✔✔limited partners who are not active in a business but generally are
known to be members of the partnership
dormant partners - correct answer ✔✔limited partners who are neither active in a business nor
generally known to be associated with the business
limited partnership - correct answer ✔✔a partnership composed of at least one general partner and at
least one limited partner
, limited liability partnership (LLP) - correct answer ✔✔a special type of limited partnership in which all
partners, who in many states must be professionals, are limited partners
corporation - correct answer ✔✔a separate legal entity apart from its owners that receives the right to
exist from the state in which it is incorporated
domestic corporation - correct answer ✔✔a corporation doing business in the state in which it is
incorporated
foreign corporation - correct answer ✔✔a corporation doing business in a state other than the one in
which it is incorporated
alien corporation - correct answer ✔✔a corporation formed in another country but doing business in the
United States
closely held corporation - correct answer ✔✔a corporation whose shares are controlled by a relatively
small number of people, often family members, relatives, friends, or employees
publicly held corporation - correct answer ✔✔a corporation that has a large number of shareholders and
who stock usually is traded on one of the large stock exchanges
preemptive rights - correct answer ✔✔the rights of a corporation's original investors to purchase enough
shares of future stock issues to maintain their original percentage of ownership in the company
treasury stock - correct answer ✔✔the shares of its own stock that a corporation owns
right of first refusal - correct answer ✔✔a provision requiring shareholders who want to sell their stock
to offer it first to the corporation
bylaws - correct answer ✔✔the rules and regulations the officers and directors establish for a
corporation's internal management and operation
