Question 1

Compare a partnership with a proprietorship.

Accepted Answer

A partnership is a business owned by two

Question 2

Describe the people who govern a corporation.

Accepted Answer

The stockholders are the corporation's o

Question 3

Usually, income derived from a joint venture is taxed as if the organization were a partnership.

Accepted Answer

A) True 
 B)False

Question 4

Limited-liability companies are permissible only in a few states in the U.S.

Accepted Answer

A) True 
 B)False

Question 5

A buy-sell agreement states what a business can do and provides other organizational and financial information.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is true about a family limited partnership?

Accepted Answer

A)  The family limited partnership has the same advantages and disadvantages as a proprietorship. 
B)  In a family limited partnership, the majority of the partners are related to each other as spouses, parents, grandparents, siblings, cousins, nieces, or nephews. 
C)  The family limited partnership has fewer benefits than other limited liability partnerships. 
D)  Only spouses, parents and siblings can form a family limited partnership. 
A)  The family limited partnership has the same advantages and disadvantages as a proprietorship. 
B)  In a family limited partnership, the majority of the partners are related to each other as spouses, parents, grandparents, siblings, cousins, nieces, or nephews. 
C)  The family limited partnership has fewer benefits than other limited liability partnerships. 
D)  Only spouses, parents and siblings can form a family limited partnership.

Question 7

Which of the following is true about proprietorship?

Accepted Answer

A)  It is frequently used in finance, insurance, and real estate. 
B)  It is the most popular form of business in the United States. 
C)  The owner of the business has to share the profits with his partner. 
D)  It is owned by two persons who have unlimited liability for its debts and obligations. 
A)  It is frequently used in finance, insurance, and real estate. 
B)  It is the most popular form of business in the United States. 
C)  The owner of the business has to share the profits with his partner. 
D)  It is owned by two persons who have unlimited liability for its debts and obligations.

Question 8

Which form of business combines the advantages of a corporation with the benefits of a partnership?

Accepted Answer

A)  Nonprofit corporation 
B)  Proprietorship 
C)  Limited-liability company 
D)  Professional service corporation 
A)  Nonprofit corporation 
B)  Proprietorship 
C)  Limited-liability company 
D)  Professional service corporation

Question 9

Which of the following is true of a limited liability partnership?

Accepted Answer

A)  The most common type of industry for this type of organization is agriculture, or family farms. 
B)  States that recognize limited liability partnerships sometimes limit them to organizations that provide a professional service for which each partner is licensed. 
C)  In a limited liability partnership, partners do not report their profits and losses on their personal tax returns. 
D)  One of the disadvantages of a limited liability partnership is that it does not protect individual partners from personal liability for the negligent acts of other partners. 
A)  The most common type of industry for this type of organization is agriculture, or family farms. 
B)  States that recognize limited liability partnerships sometimes limit them to organizations that provide a professional service for which each partner is licensed. 
C)  In a limited liability partnership, partners do not report their profits and losses on their personal tax returns. 
D)  One of the disadvantages of a limited liability partnership is that it does not protect individual partners from personal liability for the negligent acts of other partners.

Question 10

Which of the following is true about the board of directors of a corporation?

Accepted Answer

A)  They represent the stockholders in managing the company. 
B)  They direct the day-to-day operations of the business. 
C)  They elect to form the executive committee. 
D)  They have a controlling interest in the corporation. 
A)  They represent the stockholders in managing the company. 
B)  They direct the day-to-day operations of the business. 
C)  They elect to form the executive committee. 
D)  They have a controlling interest in the corporation.

Question 11

An advantage of a corporation is that large amounts of capital can be raised easily.

Accepted Answer

A) True 
 B)False

Question 12

Small business owners prefer a proprietorship over other forms of business because it:

Accepted Answer

A)  provides access to unlimited capital. 
B)  ensures that the business has an unlimited life. 
C)  provides relative freedom of action and control. 
D)  makes it easy for the owner to obtain credit. 
A)  provides access to unlimited capital. 
B)  ensures that the business has an unlimited life. 
C)  provides relative freedom of action and control. 
D)  makes it easy for the owner to obtain credit.

Question 13

The traditional form of the corporation is called a C corporation.

Accepted Answer

A) True 
 B)False

Question 14

Why do small business owners prefer proprietorship? What are the disadvantages of proprietorship?

Accepted Answer

Proprietorship is simple to enter, opera

Question 15

Describe a cooperative and a joint venture.

Accepted Answer

A cooperative is a business composed of

Question 16

Articles of incorporation are the instrument by which a corporation is formed under the corporation laws of a given state.

Accepted Answer

A) True 
 B)False

Question 17

What is a business that is owned by and operated for the benefit of patrons using its services called?

Accepted Answer

A)  Joint venture 
B)  Fractional ownership 
C)  Cooperative 
D)  Proprietorship 
A)  Joint venture 
B)  Fractional ownership 
C)  Cooperative 
D)  Proprietorship

Question 18

From a legal standpoint, a business and its owner are one in a proprietorship.

Accepted Answer

A) True 
 B)False

Question 19

The articles of copartnership should be drawn during the preoperating period and should show the rights, duties, and responsibilities of each partner.

Accepted Answer

A) True 
 B)False

Question 20

What are articles of copartnership?

Accepted Answer

A)  They are the instruments by which a partnership is formed under the business laws of a given state. 
B)  They state what the business can do and provide other organizational and financial information. 
C)  They are drawn up before the formation of a partnership to show the rights, duties, and responsibilities of each partner. 
D)  They explain how stockholders can buy out each other's interest in the business. 
A)  They are the instruments by which a partnership is formed under the business laws of a given state. 
B)  They state what the business can do and provide other organizational and financial information. 
C)  They are drawn up before the formation of a partnership to show the rights, duties, and responsibilities of each partner. 
D)  They explain how stockholders can buy out each other's interest in the business.

Compare a partnership with a proprietorship.

Describe the people who govern a corporation.

Usually, income derived from a joint venture is taxed as if the organization were a partnership.

Limited-liability companies are permissible only in a few states in the U.S.

A buy-sell agreement states what a business can do and provides other organizational and financial information.

Which of the following is true about a family limited partnership?

Which of the following is true about proprietorship?

Which form of business combines the advantages of a corporation with the benefits of a partnership?

Which of the following is true of a limited liability partnership?

Which of the following is true about the board of directors of a corporation?

An advantage of a corporation is that large amounts of capital can be raised easily.

Small business owners prefer a proprietorship over other forms of business because it:

The traditional form of the corporation is called a C corporation.

Why do small business owners prefer proprietorship? What are the disadvantages of proprietorship?

Describe a cooperative and a joint venture.

Articles of incorporation are the instrument by which a corporation is formed under the corporation laws of a given state.

What is a business that is owned by and operated for the benefit of patrons using its services called?

From a legal standpoint, a business and its owner are one in a proprietorship.

The articles of copartnership should be drawn during the preoperating period and should show the rights, duties, and responsibilities of each partner.

What are articles of copartnership?

Starting Your Small Business

Family-Owned Businesses

Maintaining Good Government Relations and Business Ethics

Becoming the Owner of a Small Business

Planning, Organizing, and Managing a Small Business

How to Obtain the Right Financing for Your Business

Developing Marketing Strategies

Promoting and Distributing

How to Obtain and Manage Human Resources and Diversity in Small Companies

How to Maintain Relationships With Your Employees and Their Representatives

Obtaining and Laying Out Operating Facilities

Purchasing, Inventory, and Quality Control

Basic Financial Planning

Budgeting and Controlling Operations and Taxes

Using Computer Technology in Small Businesses

Risk Management, Insurance, and Crime Prevention

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Exam 3: Forms of Ownership of Small Businesses

Compare a partnership with a proprietorship.

Describe the people who govern a corporation.

Usually, income derived from a joint venture is taxed as if the organization were a partnership.

Limited-liability companies are permissible only in a few states in the U.S.

A buy-sell agreement states what a business can do and provides other organizational and financial information.

Which of the following is true about a family limited partnership?

Which of the following is true about proprietorship?

Which form of business combines the advantages of a corporation with the benefits of a partnership?

Which of the following is true of a limited liability partnership?

Which of the following is true about the board of directors of a corporation?

An advantage of a corporation is that large amounts of capital can be raised easily.

Small business owners prefer a proprietorship over other forms of business because it:

The traditional form of the corporation is called a C corporation.

Why do small business owners prefer proprietorship? What are the disadvantages of proprietorship?

Describe a cooperative and a joint venture.

Articles of incorporation are the instrument by which a corporation is formed under the corporation laws of a given state.

What is a business that is owned by and operated for the benefit of patrons using its services called?

From a legal standpoint, a business and its owner are one in a proprietorship.

The articles of copartnership should be drawn during the preoperating period and should show the rights, duties, and responsibilities of each partner.

What are articles of copartnership?

Starting Your Small Business

Family-Owned Businesses

Maintaining Good Government Relations and Business Ethics

Becoming the Owner of a Small Business

Planning, Organizing, and Managing a Small Business

How to Obtain the Right Financing for Your Business

Developing Marketing Strategies

Promoting and Distributing

How to Obtain and Manage Human Resources and Diversity in Small Companies

How to Maintain Relationships With Your Employees and Their Representatives

Obtaining and Laying Out Operating Facilities

Purchasing, Inventory, and Quality Control

Basic Financial Planning

Budgeting and Controlling Operations and Taxes

Using Computer Technology in Small Businesses

Risk Management, Insurance, and Crime Prevention

Filters