James Parmenter

Introduction to Business
Chapter 10 – Managing the Forms of Business Ownership

Page 252 10.1 Assessment (Questions 1 and 2- answers only)

1. C
2. D

Page 257 10.2 Assessment (Questions 1 and 2 – answers only)

1. A
2. C

Page 258 Focus on Partnership to Corporation – Ben and Jerry’s Homemade, Inc
Key and complete the Think Critically questions (4 questions). Be sure to write out the
questions before answering.

At the outset, was Ben and Jerry’s typical for a new enterprise?
Yes, when a business is first starting out they’re not going to be in some big fancy building.
9 times out of 10 you’re going to start of small, that’s how it works for most people.

Why did Ben and Jerry want their company to remain small?
If the company got too large it would be too difficult to work beside the employees and hold
onto their values.

The manager could earn 120,000 under the 5-1 rule and 168,000 under the 7-1 rule.
Managers and Executives could make more money at other companies, hence why they
may be upset. Though regardless, that’s still a lot of money!

Ben and Jerry’s is a company that wants to make the world a better place, being apart of so
many organizations, advocating, and donating. Ben and Jerry are doing just that.

New Products- Doggie Desserts- Pricing ranging from 2.99-7.99

Page 265 10.3 Assessment (Questions 3 and 4- type question and answer)

1. A corporation that does not offer its stock to the public for sale is called a close
corporation (A).
2. Which of the following is not an advantage of a corporate form of ownership? (B)
Double Taxation
Page 269 10.4 Assessment (Questions 3 and 4 – type question and answer)
1. Specialized forms of corporations include all of the following except- (A) Joint Venture
2. A corporation can have a special tax status by structuring as a (D) All of the above

Page 274 Case In Point - Thinking Critically – Type questions and answers

Does John have the personality to be a partner?

No, he’s to unsure of himself.

Do you think John is seriously ready to become a partner?

No, he has so many doubts about it.

If you were in John’s position, how would you decide?

I would need Tyrone to write me up his business plan, and a “5 year plan”.

If John decides to accept Tyrone’s offer, what action should be taken next?
Well, for starters make sure everything is documented, then they need to discuss what
their business plan is.

Why would Tyrone want to make John a partner?

Because John is young and experienced.

Find information that might help John make a decision.

He could get business counseling which could help john and again if Tyrone could write up
a business plan.