Question 1

The limited liability company is the only form of organization that allows members to share liability.

Accepted Answer

A) True 
 B)False

Question 2

Sole proprietorships:

Accepted Answer

A) have no time limit on how long they may exist. 
B) are perpetual. 
C) continue even upon the death of the owner. 
D) allow a member of the deceased partner's family take over as a partner. 
A) have no time limit on how long they may exist. 
B) are perpetual. 
C) continue even upon the death of the owner. 
D) allow a member of the deceased partner's family take over as a partner.

Question 3

In which form of organization does the owner have greatest control?

Accepted Answer

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

Question 4

The S corporation cannot have more than 75 shareholders.

Accepted Answer

A) True 
 B)False

Question 5

The _________ imposes oversight responsibilities on members of the board of directors.

Accepted Answer

A) Social Security Act 
B) Fair Labor Practices Act 
C) Taft-Hartley Act 
D) Sarbanes-Oxley 
A) Social Security Act 
B) Fair Labor Practices Act 
C) Taft-Hartley Act 
D) Sarbanes-Oxley

Question 6

Sara Blakely has amassed a net worth of over $1 billion.

Accepted Answer

A) True 
 B)False

Question 7

The S corporation can deduct most fringe benefits for shareholders.

Accepted Answer

A) True 
 B)False

Question 8

Both partnerships and proprietorships serve as nontaxable conduits of income for their owners.

Accepted Answer

A) True 
 B)False

Question 9

The board of directors should be an even number of members.

Accepted Answer

A) True 
 B)False

Question 10

In a limited liability partnership (LLP)death or withdrawal of a partner:

Accepted Answer

A) results in automatic transfer of ownership to surviving partner(s). 
B) may result in problems trying to find a market for the shares. 
C) always results in termination of the partnership. 
D) has no effect on the partnership. 
A) results in automatic transfer of ownership to surviving partner(s). 
B) may result in problems trying to find a market for the shares. 
C) always results in termination of the partnership. 
D) has no effect on the partnership.

Question 11

Sara Blakely got the idea for her company when:

Accepted Answer

A) She was a salesperson and disliked the look of pantyhose and open toed shoes. 
B) She was in a graduate class where her team developed the idea. 
C) Her family asked her to take over the business after finishing graduate school. 
D) She was working as a salesperson and listened to complaints of customers. 
A) She was a salesperson and disliked the look of pantyhose and open toed shoes. 
B) She was in a graduate class where her team developed the idea. 
C) Her family asked her to take over the business after finishing graduate school. 
D) She was working as a salesperson and listened to complaints of customers.

Question 12

In the partnership,profit and loss distribution is determined by the partnership agreement.

Accepted Answer

A) True 
 B)False

Question 13

Corporations distribute profits primarily through dividends.

Accepted Answer

A) True 
 B)False

Question 14

In a limited liability company,every member has limited liability.

Accepted Answer

A) True 
 B)False

Question 15

Discuss the main advantages of an LLC over an S-Corp.

Accepted Answer

- In a highly leveraged enterprise,the L

Question 16

The corporation has the most continuity of the forms of business.

Accepted Answer

A) True 
 B)False

Question 17

_____________ have unlimited liability for the actions of the business.

Accepted Answer

A) Limited liability company members 
B) Corporate shareholders 
C) General partners 
D) Limited partners 
A) Limited liability company members 
B) Corporate shareholders 
C) General partners 
D) Limited partners

Question 18

Which type of ownership is the most expensive to start?

Accepted Answer

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

Question 19

Which of the following statements is(are)true?

Accepted Answer

A) Corporations are not able to take deductions and expenses available to the proprietorship or partnership. 
B) Distribution of dividends is taxed once,as income of the corporation. 
C) Bonuses,incentives,and profit sharing are allowable ways to distribute income of the corporation. 
D) Corporate tax may be higher than the individual rate. 
A) Corporations are not able to take deductions and expenses available to the proprietorship or partnership. 
B) Distribution of dividends is taxed once,as income of the corporation. 
C) Bonuses,incentives,and profit sharing are allowable ways to distribute income of the corporation. 
D) Corporate tax may be higher than the individual rate.

Question 20

Bonds can be used to raise capital in which form of ownership?

Accepted Answer

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

The limited liability company is the only form of organization that allows members to share liability.

Sole proprietorships:

In which form of organization does the owner have greatest control?

The S corporation cannot have more than 75 shareholders.

The _________ imposes oversight responsibilities on members of the board of directors.

Sara Blakely has amassed a net worth of over $1 billion.

The S corporation can deduct most fringe benefits for shareholders.

Both partnerships and proprietorships serve as nontaxable conduits of income for their owners.

The board of directors should be an even number of members.

In a limited liability partnership (LLP)death or withdrawal of a partner:

Sara Blakely got the idea for her company when:

In the partnership,profit and loss distribution is determined by the partnership agreement.

Corporations distribute profits primarily through dividends.

In a limited liability company,every member has limited liability.

Discuss the main advantages of an LLC over an S-Corp.

The corporation has the most continuity of the forms of business.

_____________ have unlimited liability for the actions of the business.

Which type of ownership is the most expensive to start?

Which of the following statements is(are)true?

Bonds can be used to raise capital in which form of ownership?

Entrepreneurship and the Entrepreneurial Mind-Set

Entrepreneurial Intentions and Corporate Entrepreneurship

Entrepreneurial Strategy: Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Intellectual Property 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 limited liability company is the only form of organization that allows members to share liability.

Sole proprietorships:

In which form of organization does the owner have greatest control?

The S corporation cannot have more than 75 shareholders.

The _________ imposes oversight responsibilities on members of the board of directors.

Sara Blakely has amassed a net worth of over $1 billion.

The S corporation can deduct most fringe benefits for shareholders.

Both partnerships and proprietorships serve as nontaxable conduits of income for their owners.

The board of directors should be an even number of members.

In a limited liability partnership (LLP)death or withdrawal of a partner:

Sara Blakely got the idea for her company when:

In the partnership,profit and loss distribution is determined by the partnership agreement.

Corporations distribute profits primarily through dividends.

In a limited liability company,every member has limited liability.

Discuss the main advantages of an LLC over an S-Corp.

The corporation has the most continuity of the forms of business.

_____________ have unlimited liability for the actions of the business.

Which type of ownership is the most expensive to start?

Which of the following statements is(are)true?

Bonds can be used to raise capital in which form of ownership?

Entrepreneurship and the Entrepreneurial Mind-Set

Entrepreneurial Intentions and Corporate Entrepreneurship

Entrepreneurial Strategy: Generating and Exploiting New Entries

Creativity and the Business Idea

Identifying and Analyzing Domestic and International Opportunities

Intellectual Property 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