Exam 14: Business Organizations

Which of the following is a disadvantage of partnerships?

Which of the following is the characteristic of a sole proprietorship?

If a sole proprietorship retains its profits for business expansion purposes instead of distributing the money to a proprietor,that owner still must pay taxes on the income made by the proprietorship.

Although expensive to create in comparison with other forms of businesses,the use of sole proprietorships is becoming all the more common.

Which of the following statements is true of limited partners?

A limited partnership is solely made up of limited partners.

Which of the following is required to have its organizers file articles of organization with state official for formation?

Does the dissolution of a partnership destroy its business? Explain briefly.

Which of the following is an advantage of the corporate form of organization?

Fiduciary duties in limited liability companies are clearly spelled out in some state statutes,while others are silent.

Which of the following statements is true of liability of partners in a general partnership?

The creation of a partnership requires permission from each state in which it does business.

In the corporate form of organization,the shareholders elect the officers.

A dissolution essentially terminates the business of a partnership.

Under the Revised Uniform Limited Partnership Act (RULPA),if a limited partner's name is used in a firm's name,that partner

If a partnership is called "Golden Consultants," then the partners would need to comply with any applicable assumed-name statute.

Criminal prosecutions for corporate wrongdoing are rising due to the increased use of deferred prosecution agreements.

What are the techniques employed by corporations to avoid double taxation?

Examples of publicly held businesses include those whose stock is traded on a public exchange.

Mention two advantages and two disadvantages of a partnership.