Question 1

Which statement is true about partnerships in the United States?

Accepted Answer

A) about 10% of U.S.businesses are partnerships 
B) most partnerships are very large 
C) setting up a partnership is easier than setting up a sole proprietorship 
D) it is possible to form a partnership without the help of a lawyer or an accountan 
A) about 10% of U.S.businesses are partnerships 
B) most partnerships are very large 
C) setting up a partnership is easier than setting up a sole proprietorship 
D) it is possible to form a partnership without the help of a lawyer or an accountan

Question 2

Grainger Company is a major automotive parts manufacturer operating in six countries.It has no restrictions on stock sales and the stock is available to the
General public.Grainger Company is a _____ corporation.

Accepted Answer

A) private corporation 
B) closely held corporation 
C) public corporation 
D) limited liability corporation 
A) private corporation 
B) closely held corporation 
C) public corporation 
D) limited liability corporation

Question 3

A not-for-profit corporation is formed to serve some public purpose and
not for financial gain.

Accepted Answer

A) True 
 B)False

Question 4

Limited liability company (LLC) owners must be U.S.citizens.

Accepted Answer

A) True 
 B)False

Question 5

The S-corporation follows the same tax rules as a sole proprietorship or
partnership.

Accepted Answer

A) True 
 B)False

Question 6

A major reason many people choose to incorporate is because of the costs
involved and double taxes that must be paid.

Accepted Answer

A) True 
 B)False

Question 7

The earnings of a limited liability company (LLC) are only taxed once-
when they are paid out to employees in the form of wages and salaries.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is an advantage of a partnership (relative to a sole proprietorship)?

Accepted Answer

A) inexpensive to set up 
B) makes financing easier 
C) benefits from diverse management talents 
D) limited liability 
A) inexpensive to set up 
B) makes financing easier 
C) benefits from diverse management talents 
D) limited liability

Question 9

Sole proprietorships account for about 72% of all U.S.businesses.

Accepted Answer

A) True 
 B)False

Question 10

About what percent of U.S.businesses are partnerships?

Accepted Answer

A) 1% 
B) 10% 
C) 30% 
D) 50% 
A) 1% 
B) 10% 
C) 30% 
D) 50%

Question 11

How does a limited partnership overcome the unlimited liability defect of a general partnership?

Accepted Answer

To overcome the defect of partnerships,

Question 12

A disadvantage of the S-corporation is unlimited liability.

Accepted Answer

A) True 
 B)False

Question 13

A _____ is entirely separate from the parties who own it.

Accepted Answer

A) corporation 
B) limited partnership 
C) general partnership 
D) unlimited proprietorship 
A) corporation 
B) limited partnership 
C) general partnership 
D) unlimited proprietorship

Question 14

A major disadvantage of a partnership is that partners may disagree on how to
operate the business and divide the profits.

Accepted Answer

A) True 
 B)False

Question 15

Which legal form of organization did Ben Cohen and Jerry Greenfield choose when they started their business?

Accepted Answer

A) Sole proprietorship 
B) Corporation 
C) Partnership 
D) S-corporation 
A) Sole proprietorship 
B) Corporation 
C) Partnership 
D) S-corporation

Question 16

When the owner of a sole proprietorship dies, the business by law is allowed to
continue to perpetuity.

Accepted Answer

A) True 
 B)False

Question 17

The partnership agreement of the accounting firm of Baines & Sweeney should
include conditions for dissolving the partnership.

Accepted Answer

A) True 
 B)False

Question 18

"What are you willing to do to set up and operate your business?" is one of the
questions you should ask yourself when choosing a form of ownership.

Accepted Answer

A) True 
 B)False

Question 19

Under the ____ form of ownership, it's important to have an agreement about conditions for settling disputes.

Accepted Answer

A) general partnership 
B) limited partnership 
C) corporation 
D) sole proprietor 
A) general partnership 
B) limited partnership 
C) corporation 
D) sole proprietor

Question 20

Some business owners prefer to operate as a limited liability company (LLC) rather than an S-corporation for the following reason:

Accepted Answer

A) unlike an S-corporations, a LLC's earnings are taxed at the personal level when 
B) unlike an S-corporation, stockholders in a LLC are not personally liable for 
C) the LLC form of organization does not have as many rules and regulations as 
D) unlike an S-corporation, the LLC pays corporate taxes on its earnings 
A) unlike an S-corporations, a LLC's earnings are taxed at the personal level when 
B) unlike an S-corporation, stockholders in a LLC are not personally liable for 
C) the LLC form of organization does not have as many rules and regulations as 
D) unlike an S-corporation, the LLC pays corporate taxes on its earnings

Which statement is true about partnerships in the United States?

Grainger Company is a major automotive parts manufacturer operating in six countries.It has no restrictions on stock sales and the stock is available to the General public.Grainger Company is a _____ corporation.

A not-for-profit corporation is formed to serve some public purpose and not for financial gain.

Limited liability company (LLC) owners must be U.S.citizens.

The S-corporation follows the same tax rules as a sole proprietorship or partnership.

A major reason many people choose to incorporate is because of the costs involved and double taxes that must be paid.

The earnings of a limited liability company (LLC) are only taxed once- when they are paid out to employees in the form of wages and salaries.

Which of the following is an advantage of a partnership (relative to a sole proprietorship)?

Sole proprietorships account for about 72% of all U.S.businesses.

About what percent of U.S.businesses are partnerships?

How does a limited partnership overcome the unlimited liability defect of a general partnership?

A disadvantage of the S-corporation is unlimited liability.

A _____ is entirely separate from the parties who own it.

A major disadvantage of a partnership is that partners may disagree on how to operate the business and divide the profits.

Which legal form of organization did Ben Cohen and Jerry Greenfield choose when they started their business?

When the owner of a sole proprietorship dies, the business by law is allowed to continue to perpetuity.

The partnership agreement of the accounting firm of Baines & Sweeney should include conditions for dissolving the partnership.

"What are you willing to do to set up and operate your business?" is one of the questions you should ask yourself when choosing a form of ownership.

Under the ____ form of ownership, it's important to have an agreement about conditions for settling disputes.

Some business owners prefer to operate as a limited liability company (LLC) rather than an S-corporation for the following reason:

The Foundations of Business

Entrepreneurship

Business Ethics and Social Responsibility

Managing for Business Success

Recruiting, Motivating, and Keeping Quality Employees

Product Design and Development

Operations Management in Manufacturing and Service Industries

Business in a Global Environment

Marketing: Providing Value to Customers

Operating in a Digital Marketing and Social Networking

The Role of Accounting in Business

Managing Financial Resources

Teamwork and Communications

Personal Finances

Managing Information and Technology

The Legal and Regulatory Environment of Business

Filters

Exam 3: Selecting a Form of Business Ownership

Which statement is true about partnerships in the United States?

Grainger Company is a major automotive parts manufacturer operating in six countries.It has no restrictions on stock sales and the stock is available to the General public.Grainger Company is a _____ corporation.

A not-for-profit corporation is formed to serve some public purpose and not for financial gain.

Limited liability company (LLC) owners must be U.S.citizens.

The S-corporation follows the same tax rules as a sole proprietorship or partnership.

A major reason many people choose to incorporate is because of the costs involved and double taxes that must be paid.

The earnings of a limited liability company (LLC) are only taxed once- when they are paid out to employees in the form of wages and salaries.

Which of the following is an advantage of a partnership (relative to a sole proprietorship)?

Sole proprietorships account for about 72% of all U.S.businesses.

About what percent of U.S.businesses are partnerships?

How does a limited partnership overcome the unlimited liability defect of a general partnership?

A disadvantage of the S-corporation is unlimited liability.

A _____ is entirely separate from the parties who own it.

A major disadvantage of a partnership is that partners may disagree on how to operate the business and divide the profits.

Which legal form of organization did Ben Cohen and Jerry Greenfield choose when they started their business?

When the owner of a sole proprietorship dies, the business by law is allowed to continue to perpetuity.

The partnership agreement of the accounting firm of Baines & Sweeney should include conditions for dissolving the partnership.

"What are you willing to do to set up and operate your business?" is one of the questions you should ask yourself when choosing a form of ownership.

Under the ____ form of ownership, it's important to have an agreement about conditions for settling disputes.

Some business owners prefer to operate as a limited liability company (LLC) rather than an S-corporation for the following reason:

The Foundations of Business

Entrepreneurship

Business Ethics and Social Responsibility

Managing for Business Success

Recruiting, Motivating, and Keeping Quality Employees

Product Design and Development

Operations Management in Manufacturing and Service Industries

Business in a Global Environment

Marketing: Providing Value to Customers

Operating in a Digital Marketing and Social Networking

The Role of Accounting in Business

Managing Financial Resources

Teamwork and Communications

Personal Finances

Managing Information and Technology

The Legal and Regulatory Environment of Business

Filters