Exam 31: Introduction to Business Organization

A sole proprietor is not liable for crimes committed by the business.

Which of the following is true of nominal partners?

Which of the following is true of limited liability companies?

Which of the following best describes sole proprietorship?

What are the important features of a limited liability company? Explain.

In a sole proprietorship, the proprietor has ultimate responsibility for business decisions.

By operating as a partnership instead of a proprietorship, the ratio of expenses per dollar of business tends to increase.

A trading partnership is one engaged in buying and selling merchandise.

A _____ partnership is one devoted to providing services, such as accounting, medicine, law, and, similar professional services.

While registering a fictitious name, a business need not disclose the names and addresses of the owners.

The owners or investors of a limited liability company are called members.

Which of the following is true of a sole proprietorship business?

A silent partner is one who takes no active part in the business.

A general partner has limited liability in respect to the partnership debts.

The LLC can be dissolved with the written consent of all members.

Which of the following is true of limited liability partnerships?

An active partner who attempts to conceal that fact from the public is a _____ partner.

Zen Corp, an Australian company, and Pluto Inc, an American company, entered into a one-time contract to build an elevated expressway in Florida. The contract was for a period of five years and both companies were held equally liable under the contract. This type of business venture is known  as a _____.

In a sole proprietorship, the proprietor has significant flexibility in managing the business.

For a limited liability company  with two or more members, the default tax classification is that of a sole proprietorship.