Question 1

The income earned by sole proprietorships is

Accepted Answer

A)  taxed twice. 
B)  not taxable. 
C)  taxed as personal income. 
D)  taxed too high. 
E)  audited less often than others. 
A)  taxed twice. 
B)  not taxable. 
C)  taxed as personal income. 
D)  taxed too high. 
E)  audited less often than others.

Question 2

Which form of business organization is the least used in the U.S.?

Accepted Answer

A)  S-corporation 
B)  Franchise 
C)  Sole proprietorship 
D)  Corporation 
E)  Partnership 
A)  S-corporation 
B)  Franchise 
C)  Sole proprietorship 
D)  Corporation 
E)  Partnership

Question 3

Partnerships have fewer regulatory controls than corporations.

Accepted Answer

A) True 
 B)False

Question 4

Sole proprietorships are taxed

Accepted Answer

A)  as partnerships. 
B)  as the owner's personal income. 
C)  as shareholders. 
D)  as corporations. 
E)  depending on the kind of sole proprietorship formed. 
A)  as partnerships. 
B)  as the owner's personal income. 
C)  as shareholders. 
D)  as corporations. 
E)  depending on the kind of sole proprietorship formed.

Question 5

A business's legal form of organization has no effect on how much taxes it pays.

Accepted Answer

A) True 
 B)False

Question 6

Sole proprietorships typically employ fewer than 50 people.

Accepted Answer

A) True 
 B)False

Question 7

Bryan thinks their plant resale company should be a corporation because

Accepted Answer

A)  it is cheaper. 
B)  all good businesses are corporations. 
C)  they would have limited liability and seem larger. 
D)  the other forms of corporation are not valid in their case. 
E)  Bryan does not think the company should be a corporation. 
A)  it is cheaper. 
B)  all good businesses are corporations. 
C)  they would have limited liability and seem larger. 
D)  the other forms of corporation are not valid in their case. 
E)  Bryan does not think the company should be a corporation.

Question 8

The biggest advantage of the corporate form of ownership may be the limited liability of its owners.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following forms of business ownership is directly limited by the life of its owner?

Accepted Answer

A)  Sole proprietorships 
B)  Limited partnerships 
C)  Corporations 
D)  Holding companies 
E)  Subsidiaries 
A)  Sole proprietorships 
B)  Limited partnerships 
C)  Corporations 
D)  Holding companies 
E)  Subsidiaries

Question 10

When firms that make and sell similar products to the same customers merge,it is known as a horizontal merger.

Accepted Answer

A) True 
 B)False

Question 11

Barber shops,dog kennels,and independent grocery stores are typically

Accepted Answer

A)  franchises. 
B)  nonprofit agencies. 
C)  sole proprietorships. 
D)  partnerships. 
E)  limited liability partnerships. 
A)  franchises. 
B)  nonprofit agencies. 
C)  sole proprietorships. 
D)  partnerships. 
E)  limited liability partnerships.

Question 12

Which of the following is a disadvantage of a partnership?

Accepted Answer

A)  Difficulty of selling ownership 
B)  Difficulty of forming business 
C)  Specialization of partners 
D)  Relatively slow decision making 
E)  Limited government regulation 
A)  Difficulty of selling ownership 
B)  Difficulty of forming business 
C)  Specialization of partners 
D)  Relatively slow decision making 
E)  Limited government regulation

Question 13

How does the taxation of partnerships work? How is this different than with a corporation?

Accepted Answer

Partnerships are quasi-taxable organizat

Question 14

The type of ownership that has the ability to raise capital most easily is a

Accepted Answer

A)  public corporation. 
B)  private corporation. 
C)  sole proprietorship. 
D)  general partnership. 
E)  limited partnership. 
A)  public corporation. 
B)  private corporation. 
C)  sole proprietorship. 
D)  general partnership. 
E)  limited partnership.

Question 15

Which of the following forms of business organization restricts the number and type of shareholder?

Accepted Answer

A)  Sole proprietorship 
B)  Co-op 
C)  Limited liability company 
D)  S-corporation 
E)  Partnership 
A)  Sole proprietorship 
B)  Co-op 
C)  Limited liability company 
D)  S-corporation 
E)  Partnership

The income earned by sole proprietorships is

Which form of business organization is the least used in the U.S.?

Partnerships have fewer regulatory controls than corporations.

Sole proprietorships are taxed

A business's legal form of organization has no effect on how much taxes it pays.

Sole proprietorships typically employ fewer than 50 people.

Bryan thinks their plant resale company should be a corporation because

The biggest advantage of the corporate form of ownership may be the limited liability of its owners.

Which of the following forms of business ownership is directly limited by the life of its owner?

When firms that make and sell similar products to the same customers merge,it is known as a horizontal merger.

Barber shops,dog kennels,and independent grocery stores are typically

Which of the following is a disadvantage of a partnership?

How does the taxation of partnerships work? How is this different than with a corporation?

The type of ownership that has the ability to raise capital most easily is a

Which of the following forms of business organization restricts the number and type of shareholder?

The Dynamics of Business and Economics

Business Ethics and Social Responsibility

Business in a Borderless World

Small Business, entrepreneurship, and Franchising

The Nature of Management

Organization, teamwork, and Communication

Managing Service and Manufacturing Operations

Motivating the Workforce

Managing Human Resources

Customer-Driven Marketing

Dimensions of Marketing Strategy

Digital Marketing and Social Networking

Accounting and Financial Statements

Money and the Financial System

Financial Management and Securities Markets

Filters

Exam 4: Options for Organizing Business

The income earned by sole proprietorships is

Which form of business organization is the least used in the U.S.?

Partnerships have fewer regulatory controls than corporations.

Sole proprietorships are taxed

A business's legal form of organization has no effect on how much taxes it pays.

Sole proprietorships typically employ fewer than 50 people.

Bryan thinks their plant resale company should be a corporation because

The biggest advantage of the corporate form of ownership may be the limited liability of its owners.

Which of the following forms of business ownership is directly limited by the life of its owner?

When firms that make and sell similar products to the same customers merge,it is known as a horizontal merger.

Barber shops,dog kennels,and independent grocery stores are typically

Which of the following is a disadvantage of a partnership?

How does the taxation of partnerships work? How is this different than with a corporation?

The type of ownership that has the ability to raise capital most easily is a

Which of the following forms of business organization restricts the number and type of shareholder?

The Dynamics of Business and Economics

Business Ethics and Social Responsibility

Business in a Borderless World

Small Business, entrepreneurship, and Franchising

The Nature of Management

Organization, teamwork, and Communication

Managing Service and Manufacturing Operations

Motivating the Workforce

Managing Human Resources

Customer-Driven Marketing

Dimensions of Marketing Strategy

Digital Marketing and Social Networking

Accounting and Financial Statements

Money and the Financial System

Financial Management and Securities Markets

Filters