Question 1

A ____ corporation is chartered in a state other than in the one in which it will do business.

Accepted Answer

A) closely held 
B) domestic 
C) foreign 
D) S- 
E) C- 
A) closely held 
B) domestic 
C) foreign 
D) S- 
E) C- C

Question 2

Nonprofit corporations are not allowed to make a profit, according to the Internal Revenue Service.

Accepted Answer

A) True 
 B)False  False

Question 3

A high-growth venture cannot be started as a sole proprietorship.

Accepted Answer

A) True 
 B)False  False

Question 4

____ life insurance is a policy on the life of principal members of the partnership, usually the senior partners.

Accepted Answer

A) Principal 
B) Uniform partnership 
C) First-partner 
D) Key-person 
E) None of these choices 
A) Principal 
B) Uniform partnership 
C) First-partner 
D) Key-person 
E) None of these choices

Question 5

More than 76 percent of all businesses in the United States are ____. ​

Accepted Answer

A) limited partnerships 
B) nonprofit businesses 
C) dormant partnerships 
D) sole proprietorships 
E) limited liability companies 
A) limited partnerships 
B) nonprofit businesses 
C) dormant partnerships 
D) sole proprietorships 
E) limited liability companies

Question 6

In terms of its treatment of income, expenses, and taxes, a partnership is essentially a sole proprietorship consisting of more than one person.

Accepted Answer

A) True 
 B)False

Question 7

If a nonprofit corporation is ever dissolved, its assets must be distributed ____. ​

Accepted Answer

A) to the owners 
B) at public auction 
C) to another tax-exempt organization 
D) to the shareholders 
E) to the federal government 
A) to the owners 
B) at public auction 
C) to another tax-exempt organization 
D) to the shareholders 
E) to the federal government

Question 8

Professionals such as lawyers, doctors, and accountants frequently employ the legal structure of a ____.

Accepted Answer

A) sole proprietorship 
B) S-corporation 
C) partnership 
D) C-corporation 
E) None of these choices 
A) sole proprietorship 
B) S-corporation 
C) partnership 
D) C-corporation 
E) None of these choices

Question 9

Only about 25 percent of all U.S. businesses are ____, but they account for 67 percent of all sales transactions.

Accepted Answer

A) nonprofits 
B) LLCs 
C) corporations 
D) sole proprietorships 
E) None of these choices 
A) nonprofits 
B) LLCs 
C) corporations 
D) sole proprietorships 
E) None of these choices

Question 10

Which of the following statements is not true of an S-corporation?

Accepted Answer

A) It may have no more than 100 shareholders. 
B) Shareholders must be U.S. citizens or residents. 
C) Profits and losses must be allocated in proportion to shareholder interests. 
D) Partnerships may be shareholders. 
E) Shareholders may not deduct losses in an amount greater than their original investment. 
A) It may have no more than 100 shareholders. 
B) Shareholders must be U.S. citizens or residents. 
C) Profits and losses must be allocated in proportion to shareholder interests. 
D) Partnerships may be shareholders. 
E) Shareholders may not deduct losses in an amount greater than their original investment.

Question 11

In a sole proprietorship, the owner is the only person responsible for the activities of the business and, therefore, is the only one to enjoy the profits and suffer the losses.

Accepted Answer

A) True 
 B)False

Question 12

Define a nonprofit corporation. ​

Accepted Answer

A nonprofit corporation is a corporation

Question 13

The U.S. Supreme Court has defined the ____ as an artificial being, invisible, intangible, and existing only in contemplation of the law.

Accepted Answer

A) corporation 
B) sole proprietorship 
C) partnership 
D) joint venture 
E) closely held corporation 
A) corporation 
B) sole proprietorship 
C) partnership 
D) joint venture 
E) closely held corporation

Question 14

Define the two types of partnerships. ​

Accepted Answer

​ In a general partnership, all the part

Question 15

In a/an ____, corporate stock is owned privately by a few individuals and is not traded publicly on a securities exchange.

Accepted Answer

A) partnership 
B) sole proprietorship 
C) closely held corporation 
D) open corporation 
E) limited partnership 
A) partnership 
B) sole proprietorship 
C) closely held corporation 
D) open corporation 
E) limited partnership

Question 16

In forming a ____, the entrepreneur gives up proprietary interest in the organization and dedicates all the assets and resources of the corporation to tax-exempt activities.

Accepted Answer

A) sole proprietorship 
B) LLC 
C) C-corporation 
D) S-corporation 
E) nonprofit corporation 
A) sole proprietorship 
B) LLC 
C) C-corporation 
D) S-corporation 
E) nonprofit corporation

Question 17

What are the critical issues a partnership should address in a buy-sell agreement? ​

Accepted Answer

Who is entitled to purchase a departing

Question 18

LLCs are becoming a popular vehicle for companies that may have global investors, because the C-corporation does not permit foreign ownership.

Accepted Answer

A) True 
 B)False

Question 19

What are the disadvantages of a sole proprietorship? ​

Accepted Answer

It has unlimited liability for all claim

Question 20

The most significant disadvantage of the sole proprietorship form of doing business is:

Accepted Answer

A) More difficult for the owner to raise capital 
B) The owner has unlimited liability 
C) The survival of the business depends on the owner 
D) It may require getting a DBA 
E) It cannot be used for high-growth ventures 
A) More difficult for the owner to raise capital 
B) The owner has unlimited liability 
C) The survival of the business depends on the owner 
D) It may require getting a DBA 
E) It cannot be used for high-growth ventures

A ____ corporation is chartered in a state other than in the one in which it will do business.

Nonprofit corporations are not allowed to make a profit, according to the Internal Revenue Service.

A high-growth venture cannot be started as a sole proprietorship.

____ life insurance is a policy on the life of principal members of the partnership, usually the senior partners.

More than 76 percent of all businesses in the United States are ____.

In terms of its treatment of income, expenses, and taxes, a partnership is essentially a sole proprietorship consisting of more than one person.

If a nonprofit corporation is ever dissolved, its assets must be distributed ____.

Professionals such as lawyers, doctors, and accountants frequently employ the legal structure of a ____.

Only about 25 percent of all U.S. businesses are ____, but they account for 67 percent of all sales transactions.

Which of the following statements is not true of an S-corporation?

In a sole proprietorship, the owner is the only person responsible for the activities of the business and, therefore, is the only one to enjoy the profits and suffer the losses.

Define a nonprofit corporation.

The U.S. Supreme Court has defined the ____ as an artificial being, invisible, intangible, and existing only in contemplation of the law.

Define the two types of partnerships.

In a/an ____, corporate stock is owned privately by a few individuals and is not traded publicly on a securities exchange.

In forming a ____, the entrepreneur gives up proprietary interest in the organization and dedicates all the assets and resources of the corporation to tax-exempt activities.

What are the critical issues a partnership should address in a buy-sell agreement?

LLCs are becoming a popular vehicle for companies that may have global investors, because the C-corporation does not permit foreign ownership.

What are the disadvantages of a sole proprietorship?

The most significant disadvantage of the sole proprietorship form of doing business is:

Understanding Entrepreneurship

Preparing for the Entrepreneurial Journey

Creating Opportunity

Analyzing the Industry and Market

Developing and Testing a Business Model

Prototyping a Solution

Protecting the Startups Assets

Calculating Startup Capital Requirements

Building the Founding Team

Preparing a Business Plan

Designing an Entrepreneurial Organization

Choosing the Legal Form of Organization

Creating a Startup Funding Strategy

Incorporating Ethics and Social Responsibility Into the Business

Planning for Growth and Change

Funding Growth

Filters

Exam 13: Developing the Startup Marketing Plan

A ____ corporation is chartered in a state other than in the one in which it will do business.

Nonprofit corporations are not allowed to make a profit, according to the Internal Revenue Service.

A high-growth venture cannot be started as a sole proprietorship.

____ life insurance is a policy on the life of principal members of the partnership, usually the senior partners.

More than 76 percent of all businesses in the United States are ____. ​

In terms of its treatment of income, expenses, and taxes, a partnership is essentially a sole proprietorship consisting of more than one person.

If a nonprofit corporation is ever dissolved, its assets must be distributed ____. ​

Professionals such as lawyers, doctors, and accountants frequently employ the legal structure of a ____.

Only about 25 percent of all U.S. businesses are ____, but they account for 67 percent of all sales transactions.

Which of the following statements is not true of an S-corporation?

In a sole proprietorship, the owner is the only person responsible for the activities of the business and, therefore, is the only one to enjoy the profits and suffer the losses.

Define a nonprofit corporation. ​

The U.S. Supreme Court has defined the ____ as an artificial being, invisible, intangible, and existing only in contemplation of the law.

Define the two types of partnerships. ​

In a/an ____, corporate stock is owned privately by a few individuals and is not traded publicly on a securities exchange.

In forming a ____, the entrepreneur gives up proprietary interest in the organization and dedicates all the assets and resources of the corporation to tax-exempt activities.

What are the critical issues a partnership should address in a buy-sell agreement? ​

LLCs are becoming a popular vehicle for companies that may have global investors, because the C-corporation does not permit foreign ownership.

What are the disadvantages of a sole proprietorship? ​

The most significant disadvantage of the sole proprietorship form of doing business is:

Understanding Entrepreneurship

Preparing for the Entrepreneurial Journey

Creating Opportunity

Analyzing the Industry and Market

Developing and Testing a Business Model

Prototyping a Solution

Protecting the Startups Assets

Calculating Startup Capital Requirements

Building the Founding Team

Preparing a Business Plan

Designing an Entrepreneurial Organization

Choosing the Legal Form of Organization

Creating a Startup Funding Strategy

Incorporating Ethics and Social Responsibility Into the Business

Planning for Growth and Change

Funding Growth

Filters

More than 76 percent of all businesses in the United States are ____.

If a nonprofit corporation is ever dissolved, its assets must be distributed ____.

Define a nonprofit corporation.

Define the two types of partnerships.

What are the critical issues a partnership should address in a buy-sell agreement?

What are the disadvantages of a sole proprietorship?