Question 1

A stockholder has the same financial responsibility as a partner.

Accepted Answer

A) True 
 B)False  False

Question 2

Match each item with the correct statement below.
-Owners of a corporation.

Accepted Answer

A) Assets 
B) balance sheet 
C) business plan 
D) Capital 
E) charter
F)close corporation
G)creditors
H)entrepreneur
I)income statement
J)intrapreneur
K)liabilities
L)officer
M)open corporation
N)stockholders 
A) Assets 
B) balance sheet 
C) business plan 
D) Capital 
E) charter
F)close corporation
G)creditors
H)entrepreneur
I)income statement
J)intrapreneur
K)liabilities
L)officer
M)open corporation
N)stockholders N

Question 3

Ownership of a corporation is measured in

Accepted Answer

A)  assets 
B)  equity 
C)  dividends 
D)  shares 
A)  assets 
B)  equity 
C)  dividends 
D)  shares D

Question 4

A corporation is authorized to act as if it were a single person by the

Accepted Answer

A)  federal government 
B)  board of directors 
C)  state in which it is incorporated 
D)  business plan 
A)  federal government 
B)  board of directors 
C)  state in which it is incorporated 
D)  business plan

Question 5

If a partner enters into a contract against the wishes of the other partners, the other partners are legally responsible for the contract.

Accepted Answer

A) True 
 B)False

Question 6

A corporation can make contracts, borrow money, and be sued.

Accepted Answer

A) True 
 B)False

Question 7

An advantage of partnerships when compared to proprietorships is

Accepted Answer

A)  if one partner disagrees with a change, the partnership cannot make the change 
B)  all partners are bound by all contracts made by the partnership 
C)  operations are usually less efficient because of shared management 
D)  more capital is usually available 
A)  if one partner disagrees with a change, the partnership cannot make the change 
B)  all partners are bound by all contracts made by the partnership 
C)  operations are usually less efficient because of shared management 
D)  more capital is usually available

Question 8

A written agreement between two or more people identifying how they will add capital, labor, or other assets and divide any profits or share any losses in their business is called a

Accepted Answer

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

Question 9

One of the main reasons many proprietorships fail within a short time is that

Accepted Answer

A)  the owner lacks needed skills 
B)  the owner lacks interest in the business 
C)  proprietorships are not able to compete with corporations any longer 
D)  proprietorships are not able to compete with partnerships 
A)  the owner lacks needed skills 
B)  the owner lacks interest in the business 
C)  proprietorships are not able to compete with corporations any longer 
D)  proprietorships are not able to compete with partnerships

Question 10

Each stockholder has only one vote regardless of the number of shares owned.

Accepted Answer

A) True 
 B)False

Question 11

It is difficult to withdraw from a partnership.

Accepted Answer

A) True 
 B)False

Question 12

In which type of partnership is the liability of a partner limited to the amount of the partner's investment?

Accepted Answer

A)  limited partnership 
B)  unlimited partnership 
C)  restricted partnership 
D)  unrestricted partnership 
A)  limited partnership 
B)  unlimited partnership 
C)  restricted partnership 
D)  unrestricted partnership

Question 13

Match each item with the correct statement below.
-Money owed by a business.

Accepted Answer

A) Assets 
B) balance sheet 
C) business plan 
D) Capital 
E) charter
F)close corporation
G)creditors
H)entrepreneur
I)income statement
J)intrapreneur
K)liabilities
L)officer
M)open corporation
N)stockholders 
A) Assets 
B) balance sheet 
C) business plan 
D) Capital 
E) charter
F)close corporation
G)creditors
H)entrepreneur
I)income statement
J)intrapreneur
K)liabilities
L)officer
M)open corporation
N)stockholders

Question 14

An agreement among two or more businesses to work together to provide a good or service is called a

Accepted Answer

A)  limited liability partnership 
B)  limited liability corporation 
C)  joint venture 
D)  cooperative 
A)  limited liability partnership 
B)  limited liability corporation 
C)  joint venture 
D)  cooperative

Question 15

An advantage of corporations in relation to partnerships is that

Accepted Answer

A)  corporations have tax advantages 
B)  corporations have unlimited life 
C)  shareholders have unlimited financial liability 
D)  shareholders can transfer ownership easily 
A)  corporations have tax advantages 
B)  corporations have unlimited life 
C)  shareholders have unlimited financial liability 
D)  shareholders can transfer ownership easily

Question 16

To form a corporation a charter is needed.

Accepted Answer

A) True 
 B)False

Question 17

In a limited partnership

Accepted Answer

A)  all partners must be general partners 
B)  no partners are liable for any of the partnership's debts 
C)  all partners must be limited partners 
D)  at least one partner must be a general partner with unlimited liability 
A)  all partners must be general partners 
B)  no partners are liable for any of the partnership's debts 
C)  all partners must be limited partners 
D)  at least one partner must be a general partner with unlimited liability

Question 18

A business with a balance sheet showing assets valued at $100,000 and capital valued at $100,000 is in a weak financial position.

Accepted Answer

A) True 
 B)False

Question 19

If assets are valued at $500,000 and capital amounts to $350,000, the liabilities of the business are

Accepted Answer

A)  $850,000 
B)  $500,000 
C)  $350,000 
D)  $150,000 
A)  $850,000 
B)  $500,000 
C)  $350,000 
D)  $150,000

Question 20

Corporations usually have a tax advantage over partnerships.

Accepted Answer

A) True 
 B)False

Exam 10: Managing the Form of Business Ownership

A stockholder has the same financial responsibility as a partner.

Match each item with the correct statement below. -Owners of a corporation.

Ownership of a corporation is measured in

A corporation is authorized to act as if it were a single person by the

If a partner enters into a contract against the wishes of the other partners, the other partners are legally responsible for the contract.

A corporation can make contracts, borrow money, and be sued.

An advantage of partnerships when compared to proprietorships is

A written agreement between two or more people identifying how they will add capital, labor, or other assets and divide any profits or share any losses in their business is called a

One of the main reasons many proprietorships fail within a short time is that

Each stockholder has only one vote regardless of the number of shares owned.

It is difficult to withdraw from a partnership.

In which type of partnership is the liability of a partner limited to the amount of the partner's investment?

Match each item with the correct statement below. -Money owed by a business.

An agreement among two or more businesses to work together to provide a good or service is called a

An advantage of corporations in relation to partnerships is that

To form a corporation a charter is needed.

In a limited partnership

A business with a balance sheet showing assets valued at $100,000 and capital valued at $100,000 is in a weak financial position.

If assets are valued at $500,000 and capital amounts to $350,000, the liabilities of the business are

Corporations usually have a tax advantage over partnerships.

Managers and Managing

Management, Supervision, and Decision Making

The Manager As Leader

Planning and Organizing

Staffing, Leading, and Controlling

Characteristics of Business

Social and Ethical Environment of Business

Economic Environment of Business

International Environment of Business

Legal Aspects of Business

Technology and Information Management

Organizational Communications

Data Analysis and Decision Making

Business Financial Records

Financing a Business

Financial Services

Credit and Insurance

Managing Production and Operations

Nature and Scope of Marketing

Product Development and Distribution

Pricing and Promotion

Managing Human Resources

Rewarding and Developing Employees

Developing an Effective Organization

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