Question 1

How is the taxation aspect of a partnership both an advantage and a disadvantage?

Accepted Answer

The taxation aspect of a partnership is

Question 2

Which of the following is the basic difficulty of owning a minority interest in a closely held corporation?

Accepted Answer

A)  There is no ready market for the minority stock should a shareholder desire to dispose of it. 
B)  Stockholders with a minority interest have no rights in a closely held corporation. 
C)  Buy and sell agreements to own a minority interest are not allowed in a closely held corporation. 
D)  Minority shareholders have unlimited personal liability for the obligations of a closely held corporation. 
E)  Minority shareholders risk losing more than their investment amount. 
A)  There is no ready market for the minority stock should a shareholder desire to dispose of it. 
B)  Stockholders with a minority interest have no rights in a closely held corporation. 
C)  Buy and sell agreements to own a minority interest are not allowed in a closely held corporation. 
D)  Minority shareholders have unlimited personal liability for the obligations of a closely held corporation. 
E)  Minority shareholders risk losing more than their investment amount.

Question 3

It is not unusual for the growth in a business to be reflected in changes in organizational forms as a part of a life cycle.

Accepted Answer

A) True 
 B)False

Question 4

Usually,the cost of creation of a business entity is not a major factor in considering which form of business organization a person will choose to operate a business.

Accepted Answer

A) True 
 B)False

Question 5

The failure to consider how to overcome disputes involving managerial control can cause business activities to suffer and an organization to fail.

Accepted Answer

A) True 
 B)False

Question 6

State the degrees of liability and taxation faced by a limited liability corporation.

Accepted Answer

For liability purposes,members do act as

Question 7

Jonathan intends to have maximum control over his decisions in his business.Which of the following forms of business organizations is most likely to give Jonathan total control over his business decisions?

Accepted Answer

A)  sole proprietorship 
B)  partnership 
C)  corporation 
D)  S corporation 
E)  limited liability company 
A)  sole proprietorship 
B)  partnership 
C)  corporation 
D)  S corporation 
E)  limited liability company

Question 8

Briefly describe the steps involved in the creation of a corporation.

Accepted Answer

The formal application for a corporate c

Question 9

A benefit corporation is also known as a B-Corp.

Accepted Answer

A) True 
 B)False

Question 10

Where does the impetus for creating the benefit corporation structure come from?

Accepted Answer

The impetus for creating the benefit cor

Question 11

Jacob and his family own and operate a publishing firm.This is an example of a publicly held organization.

Accepted Answer

A) True 
 B)False

Question 12

How is a corporation form of organization identified depending on where it has been incorporated?

Accepted Answer

A corporation is an artificial,intangibl

Question 13

Which of the following statements is true of benefit corporations?

Accepted Answer

A)  They are the only type of corporation not treated as individuals. 
B)  They are not treated as taxable entities even though they have shareholders. 
C)  They are formed through the use of deferred prosecution agreements. 
D)  They combine the positive aspects of a limited liability company and a partnership to form an organization that is designed to give the maximum profits to the owners of the organization. 
E)  They combine aspects of non-profit and profit organizations in a way intended to permit a business to make a profit while pursuing explicit, socially oriented goals. 
A)  They are the only type of corporation not treated as individuals. 
B)  They are not treated as taxable entities even though they have shareholders. 
C)  They are formed through the use of deferred prosecution agreements. 
D)  They combine the positive aspects of a limited liability company and a partnership to form an organization that is designed to give the maximum profits to the owners of the organization. 
E)  They combine aspects of non-profit and profit organizations in a way intended to permit a business to make a profit while pursuing explicit, socially oriented goals.

Question 14

Which of the following is a characteristic of partnerships?

Accepted Answer

A)  They cannot operate in more than one state without obtaining a license to do so. 
B)  They are generally subject to more regulation and governmental supervision than a corporation. 
C)  They may not use any word in the name that would imply the existence of a corporation. 
D)  They are the least expensive form of business organization. 
E)  They allow unlimited number of people to become partners. 
A)  They cannot operate in more than one state without obtaining a license to do so. 
B)  They are generally subject to more regulation and governmental supervision than a corporation. 
C)  They may not use any word in the name that would imply the existence of a corporation. 
D)  They are the least expensive form of business organization. 
E)  They allow unlimited number of people to become partners.

Question 15

Corporate officers and directors do not owe fiduciary duties of care and loyalty to shareholders.

Accepted Answer

A) True 
 B)False

How is the taxation aspect of a partnership both an advantage and a disadvantage?

Which of the following is the basic difficulty of owning a minority interest in a closely held corporation?

It is not unusual for the growth in a business to be reflected in changes in organizational forms as a part of a life cycle.

Usually,the cost of creation of a business entity is not a major factor in considering which form of business organization a person will choose to operate a business.

The failure to consider how to overcome disputes involving managerial control can cause business activities to suffer and an organization to fail.

State the degrees of liability and taxation faced by a limited liability corporation.

Jonathan intends to have maximum control over his decisions in his business.Which of the following forms of business organizations is most likely to give Jonathan total control over his business decisions?

Briefly describe the steps involved in the creation of a corporation.

A benefit corporation is also known as a B-Corp.

Where does the impetus for creating the benefit corporation structure come from?

Jacob and his family own and operate a publishing firm.This is an example of a publicly held organization.

How is a corporation form of organization identified depending on where it has been incorporated?

Which of the following statements is true of benefit corporations?

Which of the following is a characteristic of partnerships?

Corporate officers and directors do not owe fiduciary duties of care and loyalty to shareholders.

Law As a Foundation for Business

The Role of Ethics in Decision Making

The Court System

Litigation

Alternative Dispute Resolution

The Constitution

The Property System

Contract Formation

Contractual Performance and Breach

Torts Affecting Business

Intellectual Property

International Law

Criminal Law and Business

The Regulatory Process

Regulating Competitionantitrust Laws

Financial and Securities Regulations

Regulations Protecting Consumer Purchases, privacy, and Financial Activities

Environmental Regulation

Discrimination in Employment

Employment Laws

Labormanagement Relationship

Filters

Exam 14: Business Organizations

How is the taxation aspect of a partnership both an advantage and a disadvantage?

Which of the following is the basic difficulty of owning a minority interest in a closely held corporation?

It is not unusual for the growth in a business to be reflected in changes in organizational forms as a part of a life cycle.

Usually,the cost of creation of a business entity is not a major factor in considering which form of business organization a person will choose to operate a business.

The failure to consider how to overcome disputes involving managerial control can cause business activities to suffer and an organization to fail.

State the degrees of liability and taxation faced by a limited liability corporation.

Jonathan intends to have maximum control over his decisions in his business.Which of the following forms of business organizations is most likely to give Jonathan total control over his business decisions?

Briefly describe the steps involved in the creation of a corporation.

A benefit corporation is also known as a B-Corp.

Where does the impetus for creating the benefit corporation structure come from?

Jacob and his family own and operate a publishing firm.This is an example of a publicly held organization.

How is a corporation form of organization identified depending on where it has been incorporated?

Which of the following statements is true of benefit corporations?

Which of the following is a characteristic of partnerships?

Corporate officers and directors do not owe fiduciary duties of care and loyalty to shareholders.

Law As a Foundation for Business

The Role of Ethics in Decision Making

The Court System

Litigation

Alternative Dispute Resolution

The Constitution

The Property System

Contract Formation

Contractual Performance and Breach

Torts Affecting Business

Intellectual Property

International Law

Criminal Law and Business

The Regulatory Process

Regulating Competitionantitrust Laws

Financial and Securities Regulations

Regulations Protecting Consumer Purchases, privacy, and Financial Activities

Environmental Regulation

Discrimination in Employment

Employment Laws

Labormanagement Relationship

Filters