Question 1

In a limited partnership, the limited partners manage the business.

Accepted Answer

A) True 
 B)False

Question 2

A disadvantage of a corporation is that:

Accepted Answer

A)  it is difficult to raise capital. 
B)  its life is dependent on its owners. 
C)  it is subject to double taxation. 
D)  it is considered separate from its owners. 
A)  it is difficult to raise capital. 
B)  its life is dependent on its owners. 
C)  it is subject to double taxation. 
D)  it is considered separate from its owners.

Question 3

What are some of the factors that should be considered when choosing the proper legal form for a business?

Accepted Answer

The vision regarding the size of the bus

Question 4

What are the features of an S corporation?

Accepted Answer

The S corporation, a special type of cor

Question 5

In the United States, partnerships produce the most revenue.

Accepted Answer

A) True 
 B)False

Question 6

A cooperative is a business owned by two or more persons who have unlimited liability for its debt and obligations.

Accepted Answer

A) True 
 B)False

Question 7

An advantage of proprietorship is that it:

Accepted Answer

A)  proves easy in obtaining credit. 
B)  offers unique tax advantages. 
C)  ensures that the business has an unlimited life. 
D) provides access to unlimited capital. 
A)  proves easy in obtaining credit. 
B)  offers unique tax advantages. 
C)  ensures that the business has an unlimited life. 
D) provides access to unlimited capital.

Question 8

What are the advantages and disadvantages of a corporation?

Accepted Answer

A corporation is a business formed and o

Question 9

Which of the following is true of S corporations?

Accepted Answer

A)  They can issue only one class of stock-common. 
B)  They are subject to multiple taxations. 
C)  They require excessive paperwork. 
D)  They are governed by simple tax rules. 
A)  They can issue only one class of stock-common. 
B)  They are subject to multiple taxations. 
C)  They require excessive paperwork. 
D)  They are governed by simple tax rules.

Question 10

In the United States, finance, insurance, and real estate use the _____ form of business more frequently than do the other industries.

Accepted Answer

A)  partnership 
B)  proprietorship 
C)  corporation 
D)  cooperative 
A)  partnership 
B)  proprietorship 
C)  corporation 
D)  cooperative

Question 11

Which of the following is true of articles of incorporation?

Accepted Answer

A)  They govern the operations of partnerships in the absence of other expressed agreements. 
B)  They provide for protection of limited liability for shareholders. 
C)  They combine the advantages of a corporation with the benefits of a partnership. 
D)  They are the instruments by which a corporation is formed. 
A)  They govern the operations of partnerships in the absence of other expressed agreements. 
B)  They provide for protection of limited liability for shareholders. 
C)  They combine the advantages of a corporation with the benefits of a partnership. 
D)  They are the instruments by which a corporation is formed.

Question 12

The Uniform Partnership Act (UPA) governs the operations of partnerships in the absence of other expressed agreements.

Accepted Answer

A) True 
 B)False

Question 13

The most common type of industry for a _____ is agriculture.

Accepted Answer

A)  nonprofit corporation 
B)  professional service corporation 
C)  joint venture 
D)  family limited partnership 
A)  nonprofit corporation 
B)  professional service corporation 
C)  joint venture 
D)  family limited partnership

Question 14

The cooperative form of business is usually associated with farm products.

Accepted Answer

A) True 
 B)False

Question 15

A _____ is formed for civic, educational, charitable, and religious purposes.

Accepted Answer

A)  limited-liability company 
B)  joint venture 
C)  family limited partnership 
D)  nonprofit corporation 
A)  limited-liability company 
B)  joint venture 
C)  family limited partnership 
D)  nonprofit corporation

Question 16

In an endeavor where neither party can achieve its purpose alone, a _____ becomes a viable option.

Accepted Answer

A)  joint venture 
B)  proprietorship 
C)  corporate charter 
D)  buy-sell agreement 
A)  joint venture 
B)  proprietorship 
C)  corporate charter 
D)  buy-sell agreement

Question 17

A corporation is considered by law to be a unique entity, separate and apart from those who own it.

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is true of a limited partnership?

Accepted Answer

A)  General partners conduct the business. 
B)  Limited partners are held liable for debts of general partners. 
C)  Limited partners do not contribute any capital to the business. 
D)  General partners have limited liability for the debts of the business. 
A)  General partners conduct the business. 
B)  Limited partners are held liable for debts of general partners. 
C)  Limited partners do not contribute any capital to the business. 
D)  General partners have limited liability for the debts of the business.

Question 19

Which of the following is an advantage of a partnership?

Accepted Answer

A)  The partners have limited liability for the debts of the business. 
B)  Each partner is responsible only for his or her acts. 
C)  A partner can obtain bonding protection against the acts of other partners. 
D)  More capital can be raised since good credit may be available. 
A)  The partners have limited liability for the debts of the business. 
B)  Each partner is responsible only for his or her acts. 
C)  A partner can obtain bonding protection against the acts of other partners. 
D)  More capital can be raised since good credit may be available.

Question 20

Which of the following is an advantage of a corporation?

Accepted Answer

A)  It is a legal entity separate and distinct from its owners as individuals. 
B)  It gives unlimited powers to the owners. 
C)  The procedures required by the government are simple. 
D)  This legal form of business has tax advantages. 
A)  It is a legal entity separate and distinct from its owners as individuals. 
B)  It gives unlimited powers to the owners. 
C)  The procedures required by the government are simple. 
D)  This legal form of business has tax advantages.

In a limited partnership, the limited partners manage the business.

A disadvantage of a corporation is that:

What are some of the factors that should be considered when choosing the proper legal form for a business?

What are the features of an S corporation?

In the United States, partnerships produce the most revenue.

A cooperative is a business owned by two or more persons who have unlimited liability for its debt and obligations.

An advantage of proprietorship is that it:

What are the advantages and disadvantages of a corporation?

Which of the following is true of S corporations?

In the United States, finance, insurance, and real estate use the _____ form of business more frequently than do the other industries.

Which of the following is true of articles of incorporation?

The Uniform Partnership Act (UPA) governs the operations of partnerships in the absence of other expressed agreements.

The most common type of industry for a _____ is agriculture.

The cooperative form of business is usually associated with farm products.

A _____ is formed for civic, educational, charitable, and religious purposes.

In an endeavor where neither party can achieve its purpose alone, a _____ becomes a viable option.

A corporation is considered by law to be a unique entity, separate and apart from those who own it.

Which of the following is true of a limited partnership?

Which of the following is an advantage of a partnership?

Which of the following is an advantage of a corporation?

Starting Your Small Business

Family-Owned Businesses

Maintaining Good Government Relations and Business Ethics

Becoming the Owner of a Small Business

Planning, Organizing, and Managing a Small Business

How to Obtain the Right Financing for Your Business

Developing Marketing Strategies

Promoting and Distributing

How to Obtain and Manage Human Resources and Diversity in Small Companies

How to Maintain Relationships With Your Employees and Their Representatives

Obtaining and Laying Out Operating Facilities

Purchasing, Inventory, and Quality Control

Basic Financial Planning

Budgeting and Controlling Operations and Taxes

Using Computer Technology in Small Businesses

Risk Management, Insurance, and Crime Prevention

Filters

Exam 3: Forms of Ownership of Small Businesses

In a limited partnership, the limited partners manage the business.

A disadvantage of a corporation is that:

What are some of the factors that should be considered when choosing the proper legal form for a business?

What are the features of an S corporation?

In the United States, partnerships produce the most revenue.

A cooperative is a business owned by two or more persons who have unlimited liability for its debt and obligations.

An advantage of proprietorship is that it:

What are the advantages and disadvantages of a corporation?

Which of the following is true of S corporations?

In the United States, finance, insurance, and real estate use the _____ form of business more frequently than do the other industries.

Which of the following is true of articles of incorporation?

The Uniform Partnership Act (UPA) governs the operations of partnerships in the absence of other expressed agreements.

The most common type of industry for a _____ is agriculture.

The cooperative form of business is usually associated with farm products.

A _____ is formed for civic, educational, charitable, and religious purposes.

In an endeavor where neither party can achieve its purpose alone, a _____ becomes a viable option.

A corporation is considered by law to be a unique entity, separate and apart from those who own it.

Which of the following is true of a limited partnership?

Which of the following is an advantage of a partnership?

Which of the following is an advantage of a corporation?

Starting Your Small Business

Family-Owned Businesses

Maintaining Good Government Relations and Business Ethics

Becoming the Owner of a Small Business

Planning, Organizing, and Managing a Small Business

How to Obtain the Right Financing for Your Business

Developing Marketing Strategies

Promoting and Distributing

How to Obtain and Manage Human Resources and Diversity in Small Companies

How to Maintain Relationships With Your Employees and Their Representatives

Obtaining and Laying Out Operating Facilities

Purchasing, Inventory, and Quality Control

Basic Financial Planning

Budgeting and Controlling Operations and Taxes

Using Computer Technology in Small Businesses

Risk Management, Insurance, and Crime Prevention

Filters