Question 1

If no other form of business organization is chosen while obtaining a license, the business is by default a sole proprietorship.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is a major form of conducting a business?

Accepted Answer

A) institution 
B) charity 
C) corporation 
D) trust 
A) institution 
B) charity 
C) corporation 
D) trust

Question 3

General partners have unlimited personal liability for the debts and obligations of the partnership.

Accepted Answer

A) True 
 B)False

Question 4

The earnings and losses from a sole proprietorship are reported on ________.

Accepted Answer

A) the federal income tax filing document 
B) the business license that is renewed each year 
C) the proprietor's personal income tax filing 
D) the state income tax filing document 
A) the federal income tax filing document 
B) the business license that is renewed each year 
C) the proprietor's personal income tax filing 
D) the state income tax filing document

Question 5

The income or loss from the sole proprietorship is reported on ________ which must be attached to the taxpayer's Form 1040.

Accepted Answer

A) Schedule B 
B) Schedule C 
C) Form 14 
D) Form 8 
A) Schedule B 
B) Schedule C 
C) Form 14 
D) Form 8

Question 6

Which of the following is true of a sole proprietorship?

Accepted Answer

A) A business operated under sole proprietorship cannot be transferred. 
B) Large businesses cannot be operated under sole proprietorship. 
C) A business operated under sole proprietorship should be owned by one or more people of the same family. 
D) Creditors can recover claims against the business from the sole proprietor's personal assets. 
A) A business operated under sole proprietorship cannot be transferred. 
B) Large businesses cannot be operated under sole proprietorship. 
C) A business operated under sole proprietorship should be owned by one or more people of the same family. 
D) Creditors can recover claims against the business from the sole proprietor's personal assets.

Question 7

Which of the following is true of profits and losses in a general partnership?

Accepted Answer

A) The proportion of profit shared is equal to the general partner's initial investment. 
B) Losses are shared equally by all general partners. 
C) The general partner who proposed the idea of the business gets most profit. 
D) The proportion of investment governs only the proportion of loss shared and not profit obtained. 
A) The proportion of profit shared is equal to the general partner's initial investment. 
B) Losses are shared equally by all general partners. 
C) The general partner who proposed the idea of the business gets most profit. 
D) The proportion of investment governs only the proportion of loss shared and not profit obtained.

Question 8

Which of the following is true of tort liability of a general partnership?

Accepted Answer

A) Only the partner who committed the tort is liable. 
B) Partners who have not committed the tort but had to pay liability cannot indemnify from the partner that committed the torn. 
C) A partner can be sued even if he or she did not participate in the commission of the tort. 
D) If one of the partners in the partnership is released, the other partners are discharged of liability. 
A) Only the partner who committed the tort is liable. 
B) Partners who have not committed the tort but had to pay liability cannot indemnify from the partner that committed the torn. 
C) A partner can be sued even if he or she did not participate in the commission of the tort. 
D) If one of the partners in the partnership is released, the other partners are discharged of liability.

Question 9

Self-dealing-although fully disclosed-is not permitted in a general partnership.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following is true in the creation of a general partnership?

Accepted Answer

A) The business name has to have the names of all the partners. 
B) The business name cannot be a fictitious name. 
C) The name selected by the partnership cannot indicate that it is a corporation. 
D) The business cannot operate under a trade name. 
A) The business name has to have the names of all the partners. 
B) The business name cannot be a fictitious name. 
C) The name selected by the partnership cannot indicate that it is a corporation. 
D) The business cannot operate under a trade name.

Question 11

A sole proprietor is legally responsible for the business's contracts.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true of a business operating under sole proprietorship?

Accepted Answer

A) It is not considered a separate legal entity. 
B) It cannot be sold when the owner decides to do so. 
C) It requires governmental approval when being transferred. 
D) It has access to unrestricted capital by means of investments. 
A) It is not considered a separate legal entity. 
B) It cannot be sold when the owner decides to do so. 
C) It requires governmental approval when being transferred. 
D) It has access to unrestricted capital by means of investments.

Question 13

General partners are not permitted to sue other partners at law.

Accepted Answer

A) True 
 B)False

Question 14

General partnerships do not pay federal income taxes.

Accepted Answer

A) True 
 B)False

Question 15

A sole proprietorship does not does not pay taxes at the business level.

Accepted Answer

A) True 
 B)False

Question 16

How are assets distributed after the dissolution of a general partnership?

Accepted Answer

After partnership assets have been liqui

Question 17

The name selected by a general partnership cannot indicate that it is a corporation.

Accepted Answer

A) True 
 B)False

Question 18

The Revised Uniform Partnership Act is a federal statute that holds in all states.

Accepted Answer

A) True 
 B)False

Question 19

________ are the most common form of business organization in the United States.

Accepted Answer

A) General partnerships 
B) Sole proprietorships 
C) Limited liability companies 
D) Limited partnerships 
A) General partnerships 
B) Sole proprietorships 
C) Limited liability companies 
D) Limited partnerships

Exam 34: Small Business, Entrepreneurship, and General Partnerships

If no other form of business organization is chosen while obtaining a license, the business is by default a sole proprietorship.

Which of the following is a major form of conducting a business?

General partners have unlimited personal liability for the debts and obligations of the partnership.

The earnings and losses from a sole proprietorship are reported on ________.

The income or loss from the sole proprietorship is reported on ________ which must be attached to the taxpayer's Form 1040.

Which of the following is true of a sole proprietorship?

Which of the following is true of profits and losses in a general partnership?

Which of the following is true of tort liability of a general partnership?

Self-dealing-although fully disclosed-is not permitted in a general partnership.

Which of the following is true in the creation of a general partnership?

A sole proprietor is legally responsible for the business's contracts.

Which of the following is true of a business operating under sole proprietorship?

General partners are not permitted to sue other partners at law.

General partnerships do not pay federal income taxes.

A sole proprietorship does not does not pay taxes at the business level.

How are assets distributed after the dissolution of a general partnership?

The name selected by a general partnership cannot indicate that it is a corporation.

The Revised Uniform Partnership Act is a federal statute that holds in all states.

________ are the most common form of business organization in the United States.

Legal Heritage and the Digital Age

Courts and Jurisdiction

Judicial,Alternative,and E-Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crimes

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

Remedies for Breach of Traditional and E-Contracts

E-Commerce and Digital Law

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, Defenses, and Discharge

Banks, E-Money, and Financial Reform

Credit,Mortgages,and Debtor's Rights

Secured Transactions and E-Filing

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, Agents, and Independent Contractors

Employment, Worker Protection, and Immigration Law

Labor Law and Collective Bargaining

Equal Opportunity in Employment

Limited Partnerships and Special Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchises and Special Forms of Businesses

Investor Protection, E-Securities, and Wall Street Reform

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection

Antitrust Law and Unfair Trade Practices

Personal Property and Bailment

Real Property

Landlord-Tenant Law and Land Use Regulation

Insurance

Accountants' Duties and Liability

Wills Trusts and Estates

Family Law

International and World Trade Law

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