BA 100 Lecture Notes - Lecture 1: Sole Proprietorship, Independent Business, Franchising

The first step in the process of organizing a business is to:

A) determine the work that needs to be done.

B) divide people into teams.

C) group workers into departments based on skills or expertise.

D) develop an organization chart.

Under the corporate form of business organization

a. ownership rights are easily transferred.

b. a stockholder is personally liable for the debts of the corporation.

c. stockholders' acts can bind the corporation even though the stockholders have not been appointed as agents of the corporation.

d. stockholders wishing to sell their corporation shares must get the approval of other stockholders

What are the advantages of the corporate form of organization?