Question 1

A partnership cannot be dissolved except in the case of the general partner's expressed wish that the partnership cease.

Accepted Answer

A) True 
 B)False  False

Question 2

It is relatively easy and inexpensive to convert existing businesses into LLCs.

Accepted Answer

A) True 
 B)False  False

Question 3

The form of ownership with the greatest ability to accumulate capital is the:

Accepted Answer

A) sole proprietorship. 
B) partnership. 
C) joint venture. 
D) corporation. 
A) sole proprietorship. 
B) partnership. 
C) joint venture. 
D) corporation. D

Question 4

If a partnership agreement does not exist,the partnership will be governed by the Uniform Partnership Act.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true about the content of a standard partnership agreement?

Accepted Answer

A) It does not specify how profits and losses will be distributed. 
B) It includes the Certificate of Incorporation. 
C) It specifies how the partnership may be dissolved and assets divided. 
D) While it specifies the location of the business and its purpose,it does not name the partners or their legal addresses in order to maintain privacy for the partners. 
A) It does not specify how profits and losses will be distributed. 
B) It includes the Certificate of Incorporation. 
C) It specifies how the partnership may be dissolved and assets divided. 
D) While it specifies the location of the business and its purpose,it does not name the partners or their legal addresses in order to maintain privacy for the partners.

Question 6

Which of the following is true about choosing a limited liability company form of ownership?

Accepted Answer

A) It has no disadvantages except its newness. 
B) It is ideal for a new company but difficult to convert to with an existing company. 
C) It is inexpensive,easy to form,and covered by little regulation due to its newness. 
D) It's an excellent conversion vehicle for existing businesses that are suffering from double taxation but problematic for sole proprietorships. 
A) It has no disadvantages except its newness. 
B) It is ideal for a new company but difficult to convert to with an existing company. 
C) It is inexpensive,easy to form,and covered by little regulation due to its newness. 
D) It's an excellent conversion vehicle for existing businesses that are suffering from double taxation but problematic for sole proprietorships.

Question 7

________ have shares that are controlled by a relatively small number of people,often family members,relatives,or friends.

Accepted Answer

A) International partnership 
B) Publicly traded corporations 
C) Closely held corporations 
D) Privately held corporations 
A) International partnership 
B) Publicly traded corporations 
C) Closely held corporations 
D) Privately held corporations

Question 8

There is no legal limit to the number of general partners a partnership must have,but it must have one.

Accepted Answer

A) True 
 B)False

Question 9

Why would someone choose an S-corporation? Discuss who can,how it is done,how it is different from or similar to other types of corporations,and its advantages and disadvantages.

Accepted Answer

An S corporation offers its ow

Question 10

The ________ is a document that states in writing all of the terms of operating the partnership for the protection of each partner involved.

Accepted Answer

A) Certificate of Incorporation 
B) Partnership agreement 
C) Certificate for Conducting Business as Partners 
D) Partnership document 
A) Certificate of Incorporation 
B) Partnership agreement 
C) Certificate for Conducting Business as Partners 
D) Partnership document

Question 11

A corporation receives its authority to operate from:

Accepted Answer

A) the federal government. 
B) the state. 
C) the board of certification. 
D) the stockholders. 
A) the federal government. 
B) the state. 
C) the board of certification. 
D) the stockholders.

Question 12

One of the advantages of a sole proprietorship is that skills and capabilities are unlimited because you,as sole proprietor,are able to assume all of these responsibilities.

Accepted Answer

A) True 
 B)False

Question 13

The most critical disadvantage of the sole proprietorship is:

Accepted Answer

A) unlimited personal liability. 
B) limited access to capital. 
C) lack of continuity. 
D) limited skills and capacities of the owner. 
A) unlimited personal liability. 
B) limited access to capital. 
C) lack of continuity. 
D) limited skills and capacities of the owner.

Question 14

Antonio is a limited partner and is neither active nor generally openly associated with the firm.He is the ________ partner.

Accepted Answer

A) limited 
B) secret 
C) honorary 
D) dormant 
A) limited 
B) secret 
C) honorary 
D) dormant

Question 15

What is a joint venture and when is it appropriate to use this form of a company?

Accepted Answer

A joint venture is like a partnership,ex

Question 16

A joint venture is very similar to a corporation,but is only formed for a specific event or occasion.

Accepted Answer

A) True 
 B)False

Question 17

Owners/founders can be minority stockholders in a corporation but never lose their final authority or control over business decisions because they are the owners.

Accepted Answer

A) True 
 B)False

Question 18

"Double taxation" refers to the fact that the corporation itself must pay taxes on its net profits,and the stockholders must also pay taxes on the portion of those same profits distributed to them as dividends.

Accepted Answer

A) True 
 B)False

Question 19

Closely held corporations have shares that are controlled by a relatively small number of people,often family members,relatives,or friends.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is a disadvantage of the corporation form of ownership?

Accepted Answer

A) An inability to accumulate capital 
B) The unlimited liability to the members of the board 
C) Double taxation on profits and individuals 
D) The lack of continuity 
A) An inability to accumulate capital 
B) The unlimited liability to the members of the board 
C) Double taxation on profits and individuals 
D) The lack of continuity

Exam 3: Choosing a Form of Ownership

A partnership cannot be dissolved except in the case of the general partner's expressed wish that the partnership cease.

It is relatively easy and inexpensive to convert existing businesses into LLCs.

The form of ownership with the greatest ability to accumulate capital is the:

If a partnership agreement does not exist,the partnership will be governed by the Uniform Partnership Act.

Which of the following is true about the content of a standard partnership agreement?

Which of the following is true about choosing a limited liability company form of ownership?

________ have shares that are controlled by a relatively small number of people,often family members,relatives,or friends.

There is no legal limit to the number of general partners a partnership must have,but it must have one.

Why would someone choose an S-corporation? Discuss who can,how it is done,how it is different from or similar to other types of corporations,and its advantages and disadvantages.

The ________ is a document that states in writing all of the terms of operating the partnership for the protection of each partner involved.

A corporation receives its authority to operate from:

One of the advantages of a sole proprietorship is that skills and capabilities are unlimited because you,as sole proprietor,are able to assume all of these responsibilities.

The most critical disadvantage of the sole proprietorship is:

Antonio is a limited partner and is neither active nor generally openly associated with the firm.He is the ________ partner.

What is a joint venture and when is it appropriate to use this form of a company?

A joint venture is very similar to a corporation,but is only formed for a specific event or occasion.

Owners/founders can be minority stockholders in a corporation but never lose their final authority or control over business decisions because they are the owners.

"Double taxation" refers to the fact that the corporation itself must pay taxes on its net profits,and the stockholders must also pay taxes on the portion of those same profits distributed to them as dividends.

Closely held corporations have shares that are controlled by a relatively small number of people,often family members,relatives,or friends.

Which of the following is a disadvantage of the corporation form of ownership?

Entrepreneurs: the Driving Force Behind Small Business

Strategic Management and the Entrepreneur

Franchising and the Entrepreneur

Buying an Existing Business

Conducting a Feasibility Analysis and Crafting a Winning Business Plan

Creating a Solid Financial Plan

Managing Cash Flow

Building a Guerrilla Marketing Plan

Creative Use of Advertising and Promotion

Pricing and Credit Strategies

Global Marketing Strategies

E-Commerce and Entrepreneurship

Sources of Equity Financing

Sources of Debt Financing

Location,layout,and Physical Facilities

Supply Chain Management

Managing Inventory

Staffing and Leading a Growing Company

Management Succession and Risk Management Strategies in the Family Business

Ethics and Social Responsibility: Doing the Right Thing

The Legal Environment: Business Law and Government Regulation

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