Question 1

Individuals who want to invest in a partnership but who do not want to risk all of their assets can do so as:

Accepted Answer

A)  Silent Partners 
B)  General Partners 
C)  Limited Partners 
D)  Dormant Partners 
A)  Silent Partners 
B)  General Partners 
C)  Limited Partners 
D)  Dormant Partners C

Question 2

A LLC refers to a…

Accepted Answer

A)  Limited Liability Corporation 
B)  Limited Liability Company 
C)  Limited Liability Conglomerate 
D)  Lifetime Liability Corporation 
A)  Limited Liability Corporation 
B)  Limited Liability Company 
C)  Limited Liability Conglomerate 
D)  Lifetime Liability Corporation B

Question 3

Which type of business receives the most profits within the United States

Accepted Answer

A)  Corporation 
B)  Sole Proprietorship 
C)  LLC 
D)  Partnership 
A)  Corporation 
B)  Sole Proprietorship 
C)  LLC 
D)  Partnership A

Question 4

Which of the following is not an advantage of the corporate form of ownership?

Accepted Answer

A)  Limited liability 
B)  Indefinite life 
C)  Growth potential 
D)  Limited Taxation 
A)  Limited liability 
B)  Indefinite life 
C)  Growth potential 
D)  Limited Taxation

Question 5

A partner may sue his or her partners during the operation of the partnership.

Accepted Answer

A) True 
 B)False

Question 6

The limited liability partnership (LLP) offers the following benefits:

Accepted Answer

A)  Tax benefits of a partnership without personal liabil?ity for the malpractice of other partners 
B)  Tax benefits of a sole proprietorship without personal liabil?ity for the malpractice of other partners 
C)  Tax benefits of a partnership with the liability structure of a corporation 
D)  Tax benefits of a corporation with the liability structure of a partnership 
A)  Tax benefits of a partnership without personal liabil?ity for the malpractice of other partners 
B)  Tax benefits of a sole proprietorship without personal liabil?ity for the malpractice of other partners 
C)  Tax benefits of a partnership with the liability structure of a corporation 
D)  Tax benefits of a corporation with the liability structure of a partnership

Question 7

What aspect of the tax structure for corporations is commonly referred to as double taxation?

Accepted Answer

A)  The fact that the corporation pays both federal and state taxes 
B)  The requirement of shareholders to personal income tax on dividends after the corporation pays corporate income tax on the same money 
C)  The fact that both partners of the business are taxed 
D)  The concept of both Shareholders and Directors being taxed on the business 
A)  The fact that the corporation pays both federal and state taxes 
B)  The requirement of shareholders to personal income tax on dividends after the corporation pays corporate income tax on the same money 
C)  The fact that both partners of the business are taxed 
D)  The concept of both Shareholders and Directors being taxed on the business

Question 8

Which of the following is not one of the disadvantages of a sole proprietorship?

Accepted Answer

A)  Unlimited liability 
B)  Limited size 
C)  Limited life 
D)  Lack of restrictions 
A)  Unlimited liability 
B)  Limited size 
C)  Limited life 
D)  Lack of restrictions

Question 9

Describe the different types of partners in a partnership.

Accepted Answer

GENERAL PARTNERSHIPS General partners ha

Question 10

A __________ is one who is known as a partner by the general public but who does not play an active role in the operation of the business.

Accepted Answer

A)  Nominal Partner 
B)  Dormant Partner 
C)  Silent Partner 
D)  Limited Partner 
A)  Nominal Partner 
B)  Dormant Partner 
C)  Silent Partner 
D)  Limited Partner

Question 11

A partner's ownership interest in a partnership is freely transferable.

Accepted Answer

A) True 
 B)False

Question 12

A sole proprietorship would not be an adequate form of business for what type of operation?

Accepted Answer

A)  Painting contractor 
B)  Manufacturing business 
C)  Garden Store 
D)  Landscaping business 
A)  Painting contractor 
B)  Manufacturing business 
C)  Garden Store 
D)  Landscaping business

Question 13

A corporation is a person under the Constitution of the United States.

Accepted Answer

A) True 
 B)False

Question 14

Owners interest is freely transferable in what form of business?

Accepted Answer

A)  Limited Partnership 
B)  Corporation 
C)  Partnership 
D)  Sole Proprietorship 
A)  Limited Partnership 
B)  Corporation 
C)  Partnership 
D)  Sole Proprietorship

Question 15

Under a General Partnership, who has first priority in the event of liquidation of assets?

Accepted Answer

A)  Partner creditors 
B)  Partners, according to profits 
C)  Partners, according to capital contributions 
D)  Outside Creditors 
A)  Partner creditors 
B)  Partners, according to profits 
C)  Partners, according to capital contributions 
D)  Outside Creditors

Question 16

What makes a S Corporation different from a C Corporation? Describe four of the ways that an S Corp can lead to the drawbacks of an S Corporation.

Accepted Answer

The tax code allows the earnings of thes

Question 17

An L3C is typically used for what type of ventures?

Accepted Answer

A)  Startup Corporations before they start making profit 
B)  Public organizations such as high schools 
C)  Socially beneficial, for-profit ventures 
D)  Non-profit organizations 
A)  Startup Corporations before they start making profit 
B)  Public organizations such as high schools 
C)  Socially beneficial, for-profit ventures 
D)  Non-profit organizations

Question 18

General partners, as agents, are fiduciaries of the business.

Accepted Answer

A) True 
 B)False

Question 19

The Limited Liability Company (LLC) is a hybrid form of business enterprise that offers the limited liability of the corporation but the disadvantages of a partnership

Accepted Answer

A) True 
 B)False

Question 20

Which is not one of the disadvantages associated with the corporate form of ownership?

Accepted Answer

A)  High organizing expenses 
B)  Government restrictions 
C)  Lack of secrecy 
D)  Transfer of ownership 
A)  High organizing expenses 
B)  Government restrictions 
C)  Lack of secrecy 
D)  Transfer of ownership

Individuals who want to invest in a partnership but who do not want to risk all of their assets can do so as:

A LLC refers to a…

Which type of business receives the most profits within the United States

Which of the following is not an advantage of the corporate form of ownership?

A partner may sue his or her partners during the operation of the partnership.

The limited liability partnership (LLP) offers the following benefits:

What aspect of the tax structure for corporations is commonly referred to as double taxation?

Which of the following is not one of the disadvantages of a sole proprietorship?

Describe the different types of partners in a partnership.

A __________ is one who is known as a partner by the general public but who does not play an active role in the operation of the business.

A partner's ownership interest in a partnership is freely transferable.

A sole proprietorship would not be an adequate form of business for what type of operation?

A corporation is a person under the Constitution of the United States.

Owners interest is freely transferable in what form of business?

Under a General Partnership, who has first priority in the event of liquidation of assets?

What makes a S Corporation different from a C Corporation? Describe four of the ways that an S Corp can lead to the drawbacks of an S Corporation.

An L3C is typically used for what type of ventures?

General partners, as agents, are fiduciaries of the business.

The Limited Liability Company (LLC) is a hybrid form of business enterprise that offers the limited liability of the corporation but the disadvantages of a partnership

Which is not one of the disadvantages associated with the corporate form of ownership?

New Ventures: The Quiet Giant

Ideation: The Concept

Venture Choices

Marketing: The Customer

Strategic Pricing: The Hook

Startup Capital: The Injection

Financial Statements: The Scorecard

Financial Analysis: The Gauges

HR and the Development of Teams: The People

Successful Business Plans: The Compass

Scaling Ventures: The Future

Filters

Exam 5: Legal Considerations: The Parameters

Individuals who want to invest in a partnership but who do not want to risk all of their assets can do so as:

A LLC refers to a…

Which type of business receives the most profits within the United States

Which of the following is not an advantage of the corporate form of ownership?

A partner may sue his or her partners during the operation of the partnership.

The limited liability partnership (LLP) offers the following benefits:

What aspect of the tax structure for corporations is commonly referred to as double taxation?

Which of the following is not one of the disadvantages of a sole proprietorship?

Describe the different types of partners in a partnership.

A __________ is one who is known as a partner by the general public but who does not play an active role in the operation of the business.

A partner's ownership interest in a partnership is freely transferable.

A sole proprietorship would not be an adequate form of business for what type of operation?

A corporation is a person under the Constitution of the United States.

Owners interest is freely transferable in what form of business?

Under a General Partnership, who has first priority in the event of liquidation of assets?

What makes a S Corporation different from a C Corporation? Describe four of the ways that an S Corp can lead to the drawbacks of an S Corporation.

An L3C is typically used for what type of ventures?

General partners, as agents, are fiduciaries of the business.

The Limited Liability Company (LLC) is a hybrid form of business enterprise that offers the limited liability of the corporation but the disadvantages of a partnership

Which is not one of the disadvantages associated with the corporate form of ownership?

New Ventures: The Quiet Giant

Ideation: The Concept

Venture Choices

Marketing: The Customer

Strategic Pricing: The Hook

Startup Capital: The Injection

Financial Statements: The Scorecard

Financial Analysis: The Gauges

HR and the Development of Teams: The People

Successful Business Plans: The Compass

Scaling Ventures: The Future

Filters