Review Questions for the Test Over Chapters 6-7

Chapter 6

1. How is the ownership of a corporation form of business different from that of a sole proprietorship or partnership?
    

2. When compared with the sole proprietorship and partnership, what are the 4 advantages of the corporation form of ownership that are listed in the book.
    

3. When compared with the sole proprietorship and partnership, what are the 4 disadvantages of the corporation form of ownership that are listed in the book.
    

4. What is the difference between an open corporation (or publicly owned corporation) and a closely held corporation?
    

5. How is a Limited Liability Corporation (LLC) different from a regular corporation? (Two main points to mention)

Chapter 7

1. What is a monopoly? Is a monopoly in itself illegal?
    

2. What is bankruptcy?
    

3. What are patents, copyrights, and trademarks?
    

4. What is an income tax?
    

5. What is a sales tax?
    

6. What is an excise tax?
    

7. What is a real property tax?