Question 1

In an LLP,the transfer of interest of one limited partner is typically not allowed.

Accepted Answer

A) True 
 B)False

Question 2

Corporations distribute profits to owners through:

Accepted Answer

A) bonds. 
B) taxes. 
C) dividends. 
D) interest. 
A) bonds. 
B) taxes. 
C) dividends. 
D) interest.

Question 3

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.

Question 4

In a limited liability company:

Accepted Answer

A) laws governing its formation differ from state to state. 
B) members may transfer their interests at any time. 
C) members are not allowed to share income,profit,expense,deduction,loss and credit among themselves. 
D) owners are called shareholders. 
A) laws governing its formation differ from state to state. 
B) members may transfer their interests at any time. 
C) members are not allowed to share income,profit,expense,deduction,loss and credit among themselves. 
D) owners are called shareholders.

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

In an S Corporation,ownership can be freely transferred as long as the buyer is an individual.

Accepted Answer

A) True 
 B)False

Question 7

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 8

Sole proprietors can access two sources of capital-personal contributions from the entrepreneur and sale of stock.

Accepted Answer

A) True 
 B)False

Question 9

In a partnership,the general partners usually share the amount of personal liability according to their capital contributions.

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

Liability is one of the most critical reasons for establishing a:

Accepted Answer

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

Question 12

The most expensive type of business to start is the partnership.

Accepted Answer

A) True 
 B)False

Question 13

In which of the legal forms of ownership is transferability of interest the easiest?

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 14

Investors usually insist that the management team not operate the business as a part-time venture.

Accepted Answer

A) True 
 B)False

Question 15

Shares of stock are issued to members of a limited liability company.

Accepted Answer

A) True 
 B)False

Question 16

Compensation for board members can take the form of all of the following except:

Accepted Answer

A) perks,such as vacations. 
B) stock. 
C) stock options. 
D) cash payments. 
A) perks,such as vacations. 
B) stock. 
C) stock options. 
D) cash payments.

Question 17

What are the main characteristics of an LLC?

Accepted Answer

-Whereas the corporation has shareholder

Question 18

In a limited liability partnership (LLP),the death or withdrawal of a partner dissolves the partnership.

Accepted Answer

A) True 
 B)False

Question 19

Organization costs in a proprietorship are:

Accepted Answer

A) amortizable over a period of 60 months. 
B) not amortizable. 
C) amortizable over a period of 45 months. 
D) amortizable for a period of a year. 
A) amortizable over a period of 60 months. 
B) not amortizable. 
C) amortizable over a period of 45 months. 
D) amortizable for a period of a year.

Question 20

Which of the following types of ownership has the most continuity?

Accepted Answer

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

In an LLP,the transfer of interest of one limited partner is typically not allowed.

Corporations distribute profits to owners through:

The standard term of a limited liability company is:

In a limited liability company:

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

In an S Corporation,ownership can be freely transferred as long as the buyer is an individual.

In an S corporation:

Sole proprietors can access two sources of capital-personal contributions from the entrepreneur and sale of stock.

In a partnership,the general partners usually share the amount of personal liability according to their capital contributions.

S corporation status means:

Liability is one of the most critical reasons for establishing a:

The most expensive type of business to start is the partnership.

In which of the legal forms of ownership is transferability of interest the easiest?

Investors usually insist that the management team not operate the business as a part-time venture.

Shares of stock are issued to members of a limited liability company.

Compensation for board members can take the form of all of the following except:

What are the main characteristics of an LLC?

In a limited liability partnership (LLP),the death or withdrawal of a partner dissolves the partnership.

Organization costs in a proprietorship are:

Which of the following types of ownership has the most continuity?

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

In an LLP,the transfer of interest of one limited partner is typically not allowed.

Corporations distribute profits to owners through:

The standard term of a limited liability company is:

In a limited liability company:

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

In an S Corporation,ownership can be freely transferred as long as the buyer is an individual.

In an S corporation:

Sole proprietors can access two sources of capital-personal contributions from the entrepreneur and sale of stock.

In a partnership,the general partners usually share the amount of personal liability according to their capital contributions.

S corporation status means:

Liability is one of the most critical reasons for establishing a:

The most expensive type of business to start is the partnership.

In which of the legal forms of ownership is transferability of interest the easiest?

Investors usually insist that the management team not operate the business as a part-time venture.

Shares of stock are issued to members of a limited liability company.

Compensation for board members can take the form of all of the following except:

What are the main characteristics of an LLC?

In a limited liability partnership (LLP),the death or withdrawal of a partner dissolves the partnership.

Organization costs in a proprietorship are:

Which of the following types of ownership has the most continuity?

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