Question 1

The entrepreneur should decide on the legal form of organizing the new venture before asking for venture capital.

Accepted Answer

A) True 
 B)False

Question 2

When entrepreneurs are unwilling to give up responsibility to others,it becomes difficult to transition from a start-up to a growing,well-managed business.

Accepted Answer

A) True 
 B)False

Question 3

Identify the nine areas an entrepreneur should consider in choosing a legal form of organization.

Accepted Answer

Ownership
Liability
Start-up c

Question 4

The sole proprietorship form of ownership gives owners the most control of business operations.

Accepted Answer

A) True 
 B)False

Question 5

In a limited partnership,the limited partners are equally liable for the debts of the partnership.

Accepted Answer

A) True 
 B)False

Question 6

Investors accept that the management team draws a large salary for their contributions in early operations.

Accepted Answer

A) True 
 B)False

Question 7

An S Corporation combines the tax advantages of the partnership and the corporation.

Accepted Answer

A) True 
 B)False

Question 8

Discuss the advantages and disadvantages of an S-Corporation.

Accepted Answer

Some of the advantages of the S corporat

Question 9

Recent tax changes for pass through businesses such as proprietorships,S-Corps,LLC's,and partnerships are permanent changes to the tax structure.

Accepted Answer

A) True 
 B)False

Question 10

S corporation status means:

Accepted Answer

A)  shareholders do not have limited liability. 
B)  the corporation is subject to a minimum tax of 34 percent. 
C)  consent by a majority of shareholders is required for the election of this form of business. 
D)  the corporation pays no tax. 
A)  shareholders do not have limited liability. 
B)  the corporation is subject to a minimum tax of 34 percent. 
C)  consent by a majority of shareholders is required for the election of this form of business. 
D)  the corporation pays no tax.

Question 11

A board of advisors has less decision making authority than a board of directors does.

Accepted Answer

A) True 
 B)False

Question 12

In a limited partnership,the limited partners:

Accepted Answer

A)  are liable only for the amount of their capital contributions. 
B)  share the amount of personal liabilities equally. 
C)  have only insurance as protection against liability suits. 
D)  are allowed to decide on the amount of individual liabilities. 
A)  are liable only for the amount of their capital contributions. 
B)  share the amount of personal liabilities equally. 
C)  have only insurance as protection against liability suits. 
D)  are allowed to decide on the amount of individual liabilities.

Question 13

In an S corporation:

Accepted Answer

A)  gains or losses of the business are separate from the personal income of the shareholder. 
B)  shareholders retain unlimited liability. 
C)  only one class of stock is permitted. 
D)  most fringe benefits for shareholders can be deducted. 
A)  gains or losses of the business are separate from the personal income of the shareholder. 
B)  shareholders retain unlimited liability. 
C)  only one class of stock is permitted. 
D)  most fringe benefits for shareholders can be deducted.

Question 14

A limited liability corporation:

Accepted Answer

A)  has unlimited liability. 
B)  is automatically taxed as a partnership. 
C)  is decreasing in popularity among venture capitalists. 
D)  had been the most popular choice of organization structure by new ventures and small businesses. 
A)  has unlimited liability. 
B)  is automatically taxed as a partnership. 
C)  is decreasing in popularity among venture capitalists. 
D)  had been the most popular choice of organization structure by new ventures and small businesses.

Question 15

When hiring employees for the venture,the entrepreneur should consider the candidate's skills and abilities and avoid considering the individual's personality.

Accepted Answer

A) True 
 B)False

Question 16

Our text tells us that much of an entrepreneur's time during start-up is spent:

Accepted Answer

A)  putting out fires. 
B)  negotiating. 
C)  delegating. 
D)  allocating resources. 
A)  putting out fires. 
B)  negotiating. 
C)  delegating. 
D)  allocating resources.

Question 17

In an S corporation,the transfer of interest can occur:

Accepted Answer

A)  only with the consent of the other shareholders. 
B)  only if there is a charter provision for doing so. 
C)  only as long as the buyer is an individual. 
D)  depending on the agreement. 
A)  only with the consent of the other shareholders. 
B)  only if there is a charter provision for doing so. 
C)  only as long as the buyer is an individual. 
D)  depending on the agreement.

Question 18

The corporation is considered a legal person that is taxable and absorbs liability.

Accepted Answer

A) True 
 B)False

Question 19

Which type of ownership is the least expensive to start

Accepted Answer

A)  Corporation 
B)  General partnership 
C)  Limited partnership 
D)  Sole proprietorship 
A)  Corporation 
B)  General partnership 
C)  Limited partnership 
D)  Sole proprietorship

Question 20

The standard term of a limited liability company is:

Accepted Answer

A)  15 years. 
B)  20 years. 
C)  25 years. 
D)  30 years. 
A)  15 years. 
B)  20 years. 
C)  25 years. 
D)  30 years.

The entrepreneur should decide on the legal form of organizing the new venture before asking for venture capital.

When entrepreneurs are unwilling to give up responsibility to others,it becomes difficult to transition from a start-up to a growing,well-managed business.

Identify the nine areas an entrepreneur should consider in choosing a legal form of organization.

The sole proprietorship form of ownership gives owners the most control of business operations.

In a limited partnership,the limited partners are equally liable for the debts of the partnership.

Investors accept that the management team draws a large salary for their contributions in early operations.

An S Corporation combines the tax advantages of the partnership and the corporation.

Discuss the advantages and disadvantages of an S-Corporation.

Recent tax changes for pass through businesses such as proprietorships,S-Corps,LLC's,and partnerships are permanent changes to the tax structure.

S corporation status means:

A board of advisors has less decision making authority than a board of directors does.

In a limited partnership,the limited partners:

In an S corporation:

A limited liability corporation:

When hiring employees for the venture,the entrepreneur should consider the candidate's skills and abilities and avoid considering the individual's personality.

Our text tells us that much of an entrepreneur's time during start-up is spent:

In an S corporation,the transfer of interest can occur:

The corporation is considered a legal person that is taxable and absorbs liability.

Which type of ownership is the least expensive to start

The standard term of a limited liability company is:

The Entrepreneurial Mind-Set

Corporate Entrepreneurship

Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Protecting the Idea and Other Legal Issues for the Entrepreneur

The Business Plan: Creating and Starting the Venture

The Marketing Plan

The Financial Plan

Sources of Capital

Informal Risk Capital, Venture Capital, and Going Public

Strategies for Growth and Managing the Implication of Growth

Accessing Resources for Growth From External Sources

Succession Planning and Strategies for Harvesting and Ending the Venture

Filters

Exam 9: The Organizational Plan

The entrepreneur should decide on the legal form of organizing the new venture before asking for venture capital.

When entrepreneurs are unwilling to give up responsibility to others,it becomes difficult to transition from a start-up to a growing,well-managed business.

Identify the nine areas an entrepreneur should consider in choosing a legal form of organization.

The sole proprietorship form of ownership gives owners the most control of business operations.

In a limited partnership,the limited partners are equally liable for the debts of the partnership.

Investors accept that the management team draws a large salary for their contributions in early operations.

An S Corporation combines the tax advantages of the partnership and the corporation.

Discuss the advantages and disadvantages of an S-Corporation.

Recent tax changes for pass through businesses such as proprietorships,S-Corps,LLC's,and partnerships are permanent changes to the tax structure.

S corporation status means:

A board of advisors has less decision making authority than a board of directors does.

In a limited partnership,the limited partners:

In an S corporation:

A limited liability corporation:

When hiring employees for the venture,the entrepreneur should consider the candidate's skills and abilities and avoid considering the individual's personality.

Our text tells us that much of an entrepreneur's time during start-up is spent:

In an S corporation,the transfer of interest can occur:

The corporation is considered a legal person that is taxable and absorbs liability.

Which type of ownership is the least expensive to start

The standard term of a limited liability company is:

The Entrepreneurial Mind-Set

Corporate Entrepreneurship

Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Protecting the Idea and Other Legal Issues for the Entrepreneur

The Business Plan: Creating and Starting the Venture

The Marketing Plan

The Financial Plan

Sources of Capital

Informal Risk Capital, Venture Capital, and Going Public

Strategies for Growth and Managing the Implication of Growth

Accessing Resources for Growth From External Sources

Succession Planning and Strategies for Harvesting and Ending the Venture

Filters