Question 1

Liability is a major issue in the formation and type of ownership of a new
business enterprise.

Accepted Answer

A) True 
 B)False  True

Question 2

Which of the following is a requirement of an S-corporation?

Accepted Answer

A) maximum of 100 stockholders 
B) each stockholder must be a U.S.citizen or resident 
C) revenues must be less than $1 million annually 
D) all stockholders must concur with the decision to form the S-corporation 
A) maximum of 100 stockholders 
B) each stockholder must be a U.S.citizen or resident 
C) revenues must be less than $1 million annually 
D) all stockholders must concur with the decision to form the S-corporation C

Question 3

The number and severity of disputes between partners can be lessened if the partners have executed _______ that specifies everyone's rights and
Responsibilities.

Accepted Answer

A) a charter 
B) a business plan 
C) articles of incorporation 
D) a partnership agreement 
A) a charter 
B) a business plan 
C) articles of incorporation 
D) a partnership agreement D

Question 4

As attorneys who share equal ownership, profits, and losses in their firm, Raymond James and Alexander Doss have opted for which legal form of
Business ownership?

Accepted Answer

A) partnership 
B) sole proprietorship 
C) limited liability corporation 
D) S corporation 
A) partnership 
B) sole proprietorship 
C) limited liability corporation 
D) S corporation

Question 5

What advantage(s) does the S-corporation give to the small business owner that the regular corporation does not give to the small business owner?

Accepted Answer

A) limited liability protection 
B) more favorable tax treatment 
C) complete control over the business 
D) the small business owner can keep all of the profits 
A) limited liability protection 
B) more favorable tax treatment 
C) complete control over the business 
D) the small business owner can keep all of the profits

Question 6

It is imperative to decide which form of business ownership offers the features
that are most important to you.

Accepted Answer

A) True 
 B)False

Question 7

Which of these statements is true in regard to the sole proprietorship form of business?

Accepted Answer

A) you are required to share profits with others 
B) if you die, the business continues 
C) if the company borrows money from a bank, you are not personally liable for 
D) it makes financing more difficult 
A) you are required to share profits with others 
B) if you die, the business continues 
C) if the company borrows money from a bank, you are not personally liable for 
D) it makes financing more difficult

Question 8

A disadvantage of a corporation is that managers and shareholders may have goals that conflict.

Accepted Answer

A) True 
 B)False

Question 9

The most important benefit of incorporation is the _____ feature of corporations.

Accepted Answer

A) limited continuity 
B) limited liability 
C) financial resources 
D) unlimited liability 
A) limited continuity 
B) limited liability 
C) financial resources 
D) unlimited liability

Question 10

No single form of ownership will give you everything you want and you will
have to accept some tradeoffs.

Accepted Answer

A) True 
 B)False

Question 11

A very important consideration in picking a legal form of business is_________.

Accepted Answer

A) how long you plan to run the business 
B) how much legal liability you are willing to accept 
C) how successful you believe your business will be 
D) how many competitors you expect to have 
A) how long you plan to run the business 
B) how much legal liability you are willing to accept 
C) how successful you believe your business will be 
D) how many competitors you expect to have

Question 12

A hostile takeover is a takeover that is resisted by the targeted company's management and its board of directors.

Accepted Answer

A) True 
 B)False

Question 13

Which industry has the highest percentage of cooperatives?

Accepted Answer

A) outdoor gear 
B) housing 
C) agriculture 
D) insurance 
A) outdoor gear 
B) housing 
C) agriculture 
D) insurance

Question 14

Corporations are limited to large, well-known companies.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following statements is true about sole proprietors?

Accepted Answer

A) they are willing to risk their own resources to start a business 
B) they need a lot of money from others to start their business 
C) they want to minimize the costs of getting started 
D) they risk their personal assets for the business 
A) they are willing to risk their own resources to start a business 
B) they need a lot of money from others to start their business 
C) they want to minimize the costs of getting started 
D) they risk their personal assets for the business

Question 16

Sole proprietorship, partnership, and corporation are the three legal forms of
business ownership.

Accepted Answer

A) True 
 B)False

Question 17

Identify and define three types of business ownership.
(1) A sole proprietorship is a business owned by only one person.(2) A partnership is a business owned jointly by two or more people.(3) A corporation is a
legal entity that's entirely separate from the parties who own it and which is
responsible for its own debts.
(Easy)

Accepted Answer

The answer of Identify and define three types of business...

Question 18

As a sole proprietor, you can reduce your risks with insurance; however, you
still carry a substantial liability.

Accepted Answer

A) True 
 B)False

Question 19

Kraft and Heinz were an example of a(n) _____.

Accepted Answer

A) merger 
B) acquisition 
C) hostile takeover 
D) joint venture 
A) merger 
B) acquisition 
C) hostile takeover 
D) joint venture

Question 20

The _____ in a limited partnership has(have) limited involvement in the business and suffer loss only to the extent of their business investments.

Accepted Answer

A) limited partners 
B) general partner 
C) senior partner 
D) managing partner 
A) limited partners 
B) general partner 
C) senior partner 
D) managing partner

Liability is a major issue in the formation and type of ownership of a new business enterprise.

Which of the following is a requirement of an S-corporation?

The number and severity of disputes between partners can be lessened if the partners have executed _______ that specifies everyone's rights and Responsibilities.

As attorneys who share equal ownership, profits, and losses in their firm, Raymond James and Alexander Doss have opted for which legal form of Business ownership?

What advantage(s) does the S-corporation give to the small business owner that the regular corporation does not give to the small business owner?

It is imperative to decide which form of business ownership offers the features that are most important to you.

Which of these statements is true in regard to the sole proprietorship form of business?

A disadvantage of a corporation is that managers and shareholders may have goals that conflict.

The most important benefit of incorporation is the _____ feature of corporations.

No single form of ownership will give you everything you want and you will have to accept some tradeoffs.

A very important consideration in picking a legal form of business is_________.

A hostile takeover is a takeover that is resisted by the targeted company's management and its board of directors.

Which industry has the highest percentage of cooperatives?

Corporations are limited to large, well-known companies.

Which of the following statements is true about sole proprietors?

Sole proprietorship, partnership, and corporation are the three legal forms of business ownership.

As a sole proprietor, you can reduce your risks with insurance; however, you still carry a substantial liability.

Kraft and Heinz were an example of a(n) _____.

The _____ in a limited partnership has(have) limited involvement in the business and suffer loss only to the extent of their business investments.

The Foundations of Business

Entrepreneurship

Business Ethics and Social Responsibility

Managing for Business Success

Recruiting, Motivating, and Keeping Quality Employees

Product Design and Development

Operations Management in Manufacturing and Service Industries

Business in a Global Environment

Marketing: Providing Value to Customers

Operating in a Digital Marketing and Social Networking

The Role of Accounting in Business

Managing Financial Resources

Teamwork and Communications

Personal Finances

Managing Information and Technology

The Legal and Regulatory Environment of Business

Filters

Exam 3: Selecting a Form of Business Ownership

Liability is a major issue in the formation and type of ownership of a new business enterprise.

Which of the following is a requirement of an S-corporation?

The number and severity of disputes between partners can be lessened if the partners have executed _______ that specifies everyone's rights and Responsibilities.

As attorneys who share equal ownership, profits, and losses in their firm, Raymond James and Alexander Doss have opted for which legal form of Business ownership?

What advantage(s) does the S-corporation give to the small business owner that the regular corporation does not give to the small business owner?

It is imperative to decide which form of business ownership offers the features that are most important to you.

Which of these statements is true in regard to the sole proprietorship form of business?

A disadvantage of a corporation is that managers and shareholders may have goals that conflict.

The most important benefit of incorporation is the _____ feature of corporations.

No single form of ownership will give you everything you want and you will have to accept some tradeoffs.

A very important consideration in picking a legal form of business is_________.

A hostile takeover is a takeover that is resisted by the targeted company's management and its board of directors.

Which industry has the highest percentage of cooperatives?

Corporations are limited to large, well-known companies.

Which of the following statements is true about sole proprietors?

Sole proprietorship, partnership, and corporation are the three legal forms of business ownership.

As a sole proprietor, you can reduce your risks with insurance; however, you still carry a substantial liability.

Kraft and Heinz were an example of a(n) _____.

The _____ in a limited partnership has(have) limited involvement in the business and suffer loss only to the extent of their business investments.

The Foundations of Business

Entrepreneurship

Business Ethics and Social Responsibility

Managing for Business Success

Recruiting, Motivating, and Keeping Quality Employees

Product Design and Development

Operations Management in Manufacturing and Service Industries

Business in a Global Environment

Marketing: Providing Value to Customers

Operating in a Digital Marketing and Social Networking

The Role of Accounting in Business

Managing Financial Resources

Teamwork and Communications

Personal Finances

Managing Information and Technology

The Legal and Regulatory Environment of Business

Filters