Exam 5: Choosing a Form of Ownership

Probably the most important feature of a partnership agreement is:

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

The limited liability company is most like a(n):

A foreign corporation is one chartered in a foreign country.

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

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

A limited partner is liable only for the amount he has invested in the business.

Jeff is forming a company.If he chooses a(n)________ form of ownership,he can have no more than 100 stockholders and must have only one class of stock.

A corporation receives its authority to operate from:

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

In a limited partnership,limited partners are treated as:

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

Corporations that are formed in other countries but do business in the United States are:

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

The Internal Revenue Service requires partnerships to designate one person to be responsible for handling the partnership's tax matters.

An S-corporation can have more than 75 shareholders.

The form of ownership can impact an entrepreneur's ability to raise start-up capital.

A corporation doing business in the state in which it is incorporated is considered to be a(n)________ corporation.

A partner cannot legally bind the other partners to a business agreement.

An S-corporation maintains the advantages of the corporate form of ownership while having the ability to be taxed as a partnership.