Question 1

Like a proprietorship or partnership,in which the death of a founder ends the business,the corporation doesn't live beyond the lives of those who gave it life.

Accepted Answer

A) True 
 B)False

Question 2

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 3

Traditionally,social enterprises were always established as for-profit corporations.

Accepted Answer

A) True 
 B)False

Question 4

A limited partner does not have the right to manage the business in any way and still maintain limited status.

Accepted Answer

A) True 
 B)False

Question 5

One of the first and most fundamental decisions an entrepreneur faces is choosing a form of ownership.

Accepted Answer

A) True 
 B)False

Question 6

A corporation can sell its stock to a limited number of private investors in a private placement.

Accepted Answer

A) True 
 B)False

Question 7

Partners can make provisions in the partnership agreement to avoid dissolution due to death only if all parties agree to accept as partners those who inherit the deceased's interest.

Accepted Answer

A) True 
 B)False

Question 8

Small companies that anticipate net losses are ideally suited for S-corporation status.

Accepted Answer

A) True 
 B)False

Question 9

By choosing certain forms of ownership,an entrepreneur does not give up some control over the company.

Accepted Answer

A) True 
 B)False

Question 10

The key to choosing the "right" form of ownership is:

Accepted Answer

A) knowing the cost factor in time and money. 
B) understanding how each form affects both business and personal circumstances. 
C) having an experienced attorney and accountant to advise you in the choice. 
D) the fact you cannot change the form of ownership once your company is established. 
A) knowing the cost factor in time and money. 
B) understanding how each form affects both business and personal circumstances. 
C) having an experienced attorney and accountant to advise you in the choice. 
D) the fact you cannot change the form of ownership once your company is established.

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

Identify what items are included in a standard partnership agreement.

Accepted Answer

A partnership agreement will likely incl

Question 13

The "Das Spelunker" corporation,formed in Germany and conducting business in the United States,is considered to be a(n)________ corporation.

Accepted Answer

A) alien 
B) domestic 
C) foreign 
D) local 
A) alien 
B) domestic 
C) foreign 
D) local

Question 14

Acme Corporation is chartered in Delaware,but its primary area of operation is in South Carolina.In South Carolina,Acme would be considered a(n)________ corporation.

Accepted Answer

A) alien 
B) domestic 
C) foreign 
D) local 
A) alien 
B) domestic 
C) foreign 
D) local

Question 15

Complementary skills refers to:

Accepted Answer

A) the sole proprietorship skills. 
B) partner's skills that complement one another. 
C) complementary skills offered by the employees. 
D) None of the above 
A) the sole proprietorship skills. 
B) partner's skills that complement one another. 
C) complementary skills offered by the employees. 
D) None of the above

Question 16

A ________ organization uses its revenues to pursue social value rather than create personal value for investors.

Accepted Answer

A) business 
B) nonprofit 
C) venture 
D) corporate 
A) business 
B) nonprofit 
C) venture 
D) corporate

Question 17

There are no restrictions on how partners distribute the company's profits as long as they are consistent with the partnership agreement and do not violate the rights of any partner.

Accepted Answer

A) True 
 B)False

Question 18

In her partnership,Ana has unlimited liability for the partnership's debts.She would be the ________ partner.

Accepted Answer

A) limited 
B) dormant 
C) nominal 
D) general 
A) limited 
B) dormant 
C) nominal 
D) general

Question 19

When the owner of a sole proprietorship dies,the business automatically terminates.

Accepted Answer

A) True 
 B)False

Exam 5: Choosing a Form of Ownership

Like a proprietorship or partnership,in which the death of a founder ends the business,the corporation doesn't live beyond the lives of those who gave it life.

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

Traditionally,social enterprises were always established as for-profit corporations.

A limited partner does not have the right to manage the business in any way and still maintain limited status.

One of the first and most fundamental decisions an entrepreneur faces is choosing a form of ownership.

A corporation can sell its stock to a limited number of private investors in a private placement.

Partners can make provisions in the partnership agreement to avoid dissolution due to death only if all parties agree to accept as partners those who inherit the deceased's interest.

Small companies that anticipate net losses are ideally suited for S-corporation status.

By choosing certain forms of ownership,an entrepreneur does not give up some control over the company.

The key to choosing the "right" form of ownership is:

A significant disadvantage of a partnership is:

Identify what items are included in a standard partnership agreement.

The "Das Spelunker" corporation,formed in Germany and conducting business in the United States,is considered to be a(n)________ corporation.

Acme Corporation is chartered in Delaware,but its primary area of operation is in South Carolina.In South Carolina,Acme would be considered a(n)________ corporation.

Complementary skills refers to:

A ________ organization uses its revenues to pursue social value rather than create personal value for investors.

There are no restrictions on how partners distribute the company's profits as long as they are consistent with the partnership agreement and do not violate the rights of any partner.

In her partnership,Ana has unlimited liability for the partnership's debts.She would be the ________ partner.

When the owner of a sole proprietorship dies,the business automatically terminates.

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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