Question 1

To maintain control over their ownership,many closely held corporations exercise this right,known as:

Accepted Answer

A) right of first refusal. 
B) right of refusal. 
C) control rights. 
D) corporate rights. 
A) right of first refusal. 
B) right of refusal. 
C) control rights. 
D) corporate rights. A

Question 2

Which form of ownership generally has the least ability to accumulate capital?

Accepted Answer

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

Question 3

If a limited partner spent more than 500 hours in the company,he/she will be treated as general partner and will lose their limited liability protection.

Accepted Answer

A) True 
 B)False  True

Question 4

If the partners fail to create an agreement,the UPA says that the partners share equally in the partnership's profits,even if their original capital contributions are unequal.

Accepted Answer

A) True 
 B)False

Question 5

An LLP does pay taxes as a corporation and its income is not passed through to the limited partners.

Accepted Answer

A) True 
 B)False

Question 6

A limited partnership is a modification of a(n)________ form of ownership.

Accepted Answer

A) sole proprietorship 
B) general partnership 
C) corporation 
D) S-corporation 
A) sole proprietorship 
B) general partnership 
C) corporation 
D) S-corporation

Question 7

The LLC operating agreement is similar to a corporation's bylaws.

Accepted Answer

A) True 
 B)False

Question 8

What are for-profit social ventures? What is meant by their "double bottom line focus?

Accepted Answer

Many social entrepreneurs are forgoing n

Question 9

Partnership agreements do not cover how to dissolve a partnership or sell a partnership interest.

Accepted Answer

A) True 
 B)False

Question 10

Most states do not require a Certificate of Incorporation or a charter to be filed.

Accepted Answer

A) True 
 B)False

Question 11

When choosing a form of ownership,the entrepreneur should realize that:

Accepted Answer

A) it is difficult if not impossible to change forms of ownership once the company is established. 
B) the expense of changing forms of ownership makes it prohibitively expensive to change. 
C) the most common form of ownership is the partnership and is the least expensive to establish. 
D) he/she will most likely change the form of ownership as the company grows in size and revenues. 
A) it is difficult if not impossible to change forms of ownership once the company is established. 
B) the expense of changing forms of ownership makes it prohibitively expensive to change. 
C) the most common form of ownership is the partnership and is the least expensive to establish. 
D) he/she will most likely change the form of ownership as the company grows in size and revenues.

Question 12

Bylaws are the rules and regulations the officers and directors establish for the corporation's internal management and operation.

Accepted Answer

A) True 
 B)False

Question 13

An S-corporation can issue both voting and non-voting common stock to its shareholders.

Accepted Answer

A) True 
 B)False

Question 14

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 15

All partnerships must have:

Accepted Answer

A) at least three limited partners. 
B) no dormant partners. 
C) at least one general partner. 
D) at least one silent or money partner. 
A) at least three limited partners. 
B) no dormant partners. 
C) at least one general partner. 
D) at least one silent or money partner.

Question 16

The corporation,like the proprietorship,avoids the "double taxation" disadvantage associated with the partnership form of ownership.

Accepted Answer

A) True 
 B)False

Question 17

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

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

One of the advantages of a partnership over a proprietorship is the increased sources of capital and credit it offers.

Accepted Answer

A) True 
 B)False

Question 20

S-corporation status usually benefits start-up companies anticipating losses,and highly profitable firms with substantial dividends to pay out to shareholders.

Accepted Answer

A) True 
 B)False

Exam 5: Choosing a Form of Ownership

To maintain control over their ownership,many closely held corporations exercise this right,known as:

Which form of ownership generally has the least ability to accumulate capital?

If a limited partner spent more than 500 hours in the company,he/she will be treated as general partner and will lose their limited liability protection.

If the partners fail to create an agreement,the UPA says that the partners share equally in the partnership's profits,even if their original capital contributions are unequal.

An LLP does pay taxes as a corporation and its income is not passed through to the limited partners.

A limited partnership is a modification of a(n)________ form of ownership.

The LLC operating agreement is similar to a corporation's bylaws.

What are for-profit social ventures? What is meant by their "double bottom line focus?

Partnership agreements do not cover how to dissolve a partnership or sell a partnership interest.

Most states do not require a Certificate of Incorporation or a charter to be filed.

When choosing a form of ownership,the entrepreneur should realize that:

Bylaws are the rules and regulations the officers and directors establish for the corporation's internal management and operation.

An S-corporation can issue both voting and non-voting common stock to its shareholders.

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

All partnerships must have:

The corporation,like the proprietorship,avoids the "double taxation" disadvantage associated with the partnership form of ownership.

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

"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.

One of the advantages of a partnership over a proprietorship is the increased sources of capital and credit it offers.

S-corporation status usually benefits start-up companies anticipating losses,and highly profitable firms with substantial dividends to pay out to shareholders.

Entrepreneurs: the Driving Force Behind Small Business

Ethics and Social Responsibility: Doing the Right Thing

Creativity and Innovation: Keys to Entrepreneurial Success

Strategic Management and the Entrepreneur

Franchising and the Entrepreneur

Buying an Existing Business

New Business Planning Process: Feasibility Analysis,business Modeling,

Building a Bootstrap Marketing Plan

Creative Use of Advertising and Promotion

Pricing and Credit Strategies

Global Marketing Strategies

E-Commerce and Entrepreneurship

Creating a Solid Financial Plan

Managing Cash Flow

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

The Legal Environment: Business Law and Government Regulation

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