Exam 9: The Organizational Plan

The standard term of a limited liability company is 30 years.

The decision regarding the legal form of organization should be made by the entrepreneur before request for venture capital.

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

In a partnership,the death of a general partner generally does not result in termination of the partnership.

When it comes to decision making,in a limited partnership:

Which of the following ways of distributing the income of corporations is taxed twice?

To build a successful organization culture the entrepreneur:

The limited liability company is automatically taxed as a corporation.

Sole proprietorships usually use a calendar year for tax purposes.

Which type of ownership is the least expensive to start?

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

The Sarbanes-Oxley Act reduced the responsibilities of the board of directors.

The partnership is the most attractive type of business formation for raising capital.

A limited liability corporation:

Identify the four important considerations/strategies in recruiting and assembling an effective team and organizational culture outlined in the text.

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

Corporations are not able to distribute profits to shareholders.

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

Transferability of interest is easiest in a limited partnership.

Shareholders in an S corporation have the same liability protection as shareholders in a C corporation.