Question 1

In a ________ capital losses can be carried forward indefinitely.

Accepted Answer

A) sole proprietorship 
B) partnership 
C) corporation 
D) LLP 
A) sole proprietorship 
B) partnership 
C) corporation 
D) LLP A

Question 2

Stockholders in a corporation share day-to-day control of the entrepreneur.

Accepted Answer

A) True 
 B)False  False

Question 3

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

Accepted Answer

A) True 
 B)False  True

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

The legal form of business with the most alternatives for raising capital is the:

Accepted Answer

A) proprietorship. 
B) corporation. 
C) limited partnership. 
D) full partnership. 
A) proprietorship. 
B) corporation. 
C) limited partnership. 
D) full partnership.

Question 6

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

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

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

Accepted Answer

A) True 
 B)False

Question 9

Once the board of advisors have been hired,the entrepreneur should not question their advice.

Accepted Answer

A) True 
 B)False

Question 10

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 11

In which form of organization would it be possible for individuals that don't have any ownership stake in the business to make decisions?

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 12

Method Products,Inc.is expected to surpass $110 million in sales in 2011.

Accepted Answer

A) True 
 B)False

Question 13

In designing the organization:

Accepted Answer

A) the initial design is usually complicated. 
B) poor design is a significant cause for business failure since the entrepreneur often performs all organization functions themselves. 
C) the entrepreneur easily transitions from a growing start-up to a growing,well managed business. 
D) as the workload increases the organizational structure will contract. 
A) the initial design is usually complicated. 
B) poor design is a significant cause for business failure since the entrepreneur often performs all organization functions themselves. 
C) the entrepreneur easily transitions from a growing start-up to a growing,well managed business. 
D) as the workload increases the organizational structure will contract.

Question 14

The S corporation cannot have more than 75 shareholders.

Accepted Answer

A) True 
 B)False

Question 15

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

Question 16

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

Accepted Answer

ownership
liability
start-up c

Question 17

Income from the partnership is taxed twice: once at the business level and once as personal income.

Accepted Answer

A) True 
 B)False

Question 18

A board of directors should not:

Accepted Answer

A) have members with unlimited terms. 
B) have an odd number of members. 
C) be comprised of external advisors. 
D) be compensated with anything other than stock. 
A) have members with unlimited terms. 
B) have an odd number of members. 
C) be comprised of external advisors. 
D) be compensated with anything other than stock.

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

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.

In a ________ capital losses can be carried forward indefinitely.

Stockholders in a corporation share day-to-day control of the entrepreneur.

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

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

The legal form of business with the most alternatives for raising capital is the:

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

In an S corporation:

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

Once the board of advisors have been hired,the entrepreneur should not question their advice.

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

In which form of organization would it be possible for individuals that don't have any ownership stake in the business to make decisions?

Method Products,Inc.is expected to surpass $110 million in sales in 2011.

In designing the organization:

The S corporation cannot have more than 75 shareholders.

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

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

Income from the partnership is taxed twice: once at the business level and once as personal income.

A board of directors should not:

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

Which of the following statements is (are)true?

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 a ________ capital losses can be carried forward indefinitely.

Stockholders in a corporation share day-to-day control of the entrepreneur.

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

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

The legal form of business with the most alternatives for raising capital is the:

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

In an S corporation:

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

Once the board of advisors have been hired,the entrepreneur should not question their advice.

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

In which form of organization would it be possible for individuals that don't have any ownership stake in the business to make decisions?

Method Products,Inc.is expected to surpass $110 million in sales in 2011.

In designing the organization:

The S corporation cannot have more than 75 shareholders.

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

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

Income from the partnership is taxed twice: once at the business level and once as personal income.

A board of directors should not:

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

Which of the following statements is (are)true?

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