Exam 6: Setting up the Company

Annual state _________ are usually based on the number of shares of authorized stock and on whether the stock has a par value.

Which of the following business could consider S-Corporation status?

The _____________ is a corporation that elects under federal and state tax laws to be taxed like a partnership.

Who establishes the general policies of the company, and to a greater or lesser extent depending on the particular corporation, can become involves in various details of the operating procedures?

Who has the ultimate power and control of every corporation?

____________ are the stock that a company sold to investors to generate capital.

All of the following are disadvantages of S-corporations except:

All of the following are disadvantages of a partnership except:

All of the following are advantages of a limited liability company except:

All of the following are advantages of a sole proprietorship except:

One of the most attractive features of sole proprietorships is how fast and simple it is to begin operations.

To become an S-corporation, all of the following must occur except:

An advantage of becoming an S corporation is that the business does not need to pay corporate income tax.

A(n) _________ is usually defined as an association of two or more people carrying on as co-owners of a business for profit.

In the first 30 days, a suggested business start-up checklist includes all but which one of the following?

The CEO selects the board and the CEO has the power to remove board members.

The greatest advantage of a sole proprietorship is unlimited personal liability.

Who is in charge of day-to-day operations under the directives of the board of directors?

Unfortunately, with the way the laws are written, the sole owner does not have the right to make all the decisions for the business.

The total number of issued shares outstanding in a company is most often shown in the annual report.