Question 1

Probably the most important feature of a partnership agreement is:

Accepted Answer

A) that it identifies the name of the partnership. 
B) that it states the purpose and location of the business. 
C) that it determines how the partnership will pay taxes and fees. 
D) that it resolves potential sources of conflict. 
A) that it identifies the name of the partnership. 
B) that it states the purpose and location of the business. 
C) that it determines how the partnership will pay taxes and fees. 
D) that it resolves potential sources of conflict.

Question 2

If a sole proprietorship fails,the owner is not liable for its debts since the business is a separate legal entity.

Accepted Answer

A) True 
 B)False

Question 3

Each partner is an agent for the business and can legally bind other partners to business agreements.

Accepted Answer

A) True 
 B)False

Question 4

A professional corporation is created in the same way as a regular corporation,and exists to provide limited liability to doctors,lawyers,etc.

Accepted Answer

A) True 
 B)False

Question 5

A foreign corporation is one chartered in a foreign country.

Accepted Answer

A) True 
 B)False

Question 6

The terms of a partnership agreement are legally binding even if some of the items are illegal.

Accepted Answer

A) True 
 B)False

Question 7

In most cases of sole proprietorship,an entrepreneur can complete all of the necessary paperwork in a single day!

Accepted Answer

A) True 
 B)False

Question 8

What are the pluses and minuses for the owners of a company in choosing to incorporate their business?

Accepted Answer

A limited partnership operates like any

Question 9

The Uniform Partnership Act covers three elements of a partnership;the common ownership interest,sharing profits or losses,and management participation rights.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following generally is not required by a Certificate of Incorporation?

Accepted Answer

A) The names and the addresses of the incorporators 
B) A statement of the corporation's purpose 
C) A statement of how stock proceeds will be used 
D) The corporation's bylaws 
A) The names and the addresses of the incorporators 
B) A statement of the corporation's purpose 
C) A statement of how stock proceeds will be used 
D) The corporation's bylaws

Question 11

A significant disadvantage of a partnership is:

Accepted Answer

A) the unlimited personal liability for all partners. 
B) the inability to attract either additional capital or new partners due to the complexity of rewriting the agreement. 
C) the difficulty of disposing a partnership interest without dissolving the partnership. 
D) the regulatory complexity under which a partnership must be formed and operated. 
A) the unlimited personal liability for all partners. 
B) the inability to attract either additional capital or new partners due to the complexity of rewriting the agreement. 
C) the difficulty of disposing a partnership interest without dissolving the partnership. 
D) the regulatory complexity under which a partnership must be formed and operated.

Question 12

The Supreme Court has defined a partnership as "an artificial being,invisible,intangible,and existing only in contemplation of the law."

Accepted Answer

A) True 
 B)False

Question 13

A partnership agreement sets how the partners will be compensated.Normally:

Accepted Answer

A) partners are not entitled to salaries or wages,but are compensated by a share of the profits of the business. 
B) the general partner's salary is set at 2 times the salaries of the limited partners. 
C) both general and limited partners are permitted salaries,but all silent or dormant partners are compensated only by sharing in the profits. 
D) while the agreement establishes payout schedules,it does not spell out what constitutes profit. 
A) partners are not entitled to salaries or wages,but are compensated by a share of the profits of the business. 
B) the general partner's salary is set at 2 times the salaries of the limited partners. 
C) both general and limited partners are permitted salaries,but all silent or dormant partners are compensated only by sharing in the profits. 
D) while the agreement establishes payout schedules,it does not spell out what constitutes profit.

Question 14

In a limited partnership,the "limited partner" is primarily an investor and can lose only the amount invested in the business.

Accepted Answer

A) True 
 B)False

Question 15

Why would an entrepreneur choose a sole proprietorship? What drawbacks should be considered?

Accepted Answer

A sole proprietorship is a business owne

Question 16

The ________ codifies the body of law dealing with partnerships in the United States.

Accepted Answer

A) Small Business Partnership Agreement 
B) Uniform Partnership Act (UP
A)  
C) Partnership Agreement 
D) None of the above 
A) Small Business Partnership Agreement 
B) Uniform Partnership Act (UP
A)  
C) Partnership Agreement 
D) None of the above

Question 17

The most common form of ownership in the United States is the partnership.

Accepted Answer

A) True 
 B)False

Question 18

Sole proprietorships characteristically are:

Accepted Answer

A) fairly complex to create. 
B) subject to special legal restrictions. 
C) expensive to create. 
D) easy to discontinue. 
A) fairly complex to create. 
B) subject to special legal restrictions. 
C) expensive to create. 
D) easy to discontinue.

Question 19

The income derived from a joint venture is taxed if it arises from a partnership.

Accepted Answer

A) True 
 B)False

Question 20

Identify what items are included in a standard partnership agreement.

Accepted Answer

A partnership agreement will likely incl

Exam 3: Choosing a Form of Ownership

Probably the most important feature of a partnership agreement is:

If a sole proprietorship fails,the owner is not liable for its debts since the business is a separate legal entity.

Each partner is an agent for the business and can legally bind other partners to business agreements.

A professional corporation is created in the same way as a regular corporation,and exists to provide limited liability to doctors,lawyers,etc.

A foreign corporation is one chartered in a foreign country.

The terms of a partnership agreement are legally binding even if some of the items are illegal.

In most cases of sole proprietorship,an entrepreneur can complete all of the necessary paperwork in a single day!

What are the pluses and minuses for the owners of a company in choosing to incorporate their business?

The Uniform Partnership Act covers three elements of a partnership;the common ownership interest,sharing profits or losses,and management participation rights.

Which of the following generally is not required by a Certificate of Incorporation?

A significant disadvantage of a partnership is:

The Supreme Court has defined a partnership as "an artificial being,invisible,intangible,and existing only in contemplation of the law."

A partnership agreement sets how the partners will be compensated.Normally:

In a limited partnership,the "limited partner" is primarily an investor and can lose only the amount invested in the business.

Why would an entrepreneur choose a sole proprietorship? What drawbacks should be considered?

The ________ codifies the body of law dealing with partnerships in the United States.

The most common form of ownership in the United States is the partnership.

Sole proprietorships characteristically are:

The income derived from a joint venture is taxed if it arises from a partnership.

Identify what items are included in a standard partnership agreement.

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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