Question 1

Outline the incorporation process.

Accepted Answer

When incorporating,a Certificate of Inco

Question 2

Which of the following is required to form a partnership?

Accepted Answer

A) A general partner 
B) A limited partner 
C) A secret partner 
D) A silent partner 
A) A general partner 
B) A limited partner 
C) A secret partner 
D) A silent partner

Question 3

Of all U.S.business firms,sole proprietorships are the most common,accounting for approximately 71 percent of businesses.

Accepted Answer

A) True 
 B)False

Question 4

Income from a joint venture is taxed as the income from a(n):

Accepted Answer

A) sole proprietorship. 
B) partnership. 
C) corporation. 
D) S corporation. 
A) sole proprietorship. 
B) partnership. 
C) corporation. 
D) S corporation.

Question 5

A limited liability company cannot have any more than two of the following corporate characteristics: limited liability,continuity of life,free transferability of interest,and centralized management.

Accepted Answer

A) True 
 B)False

Question 6

A corporation formed in Taiwan doing business in the United States is a foreign corporation.

Accepted Answer

A) True 
 B)False

Question 7

In a partnership,the business itself is subject to federal income tax.

Accepted Answer

A) True 
 B)False

Question 8

A business with more than five owners must be a corporation.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is not true of a limited liability partnership?

Accepted Answer

A) All partners are limited partners. 
B) Most states restrict this form of ownership to certain types of professions such as attorneys,physicians,dentists,accountants,etc. 
C) Although LLPs have many of the characteristics of partnerships,they are taxed as a corporation. 
D) It must involve a general partner,a limited partner,a silent partner,and a dormant partner. 
A) All partners are limited partners. 
B) Most states restrict this form of ownership to certain types of professions such as attorneys,physicians,dentists,accountants,etc. 
C) Although LLPs have many of the characteristics of partnerships,they are taxed as a corporation. 
D) It must involve a general partner,a limited partner,a silent partner,and a dormant partner.

Question 10

A general partner is personally liable only for the amount of money he has invested in the partnership.

Accepted Answer

A) True 
 B)False

Question 11

There is no limit to the number of general partners a partnership may have,but it must have at least one general partner.

Accepted Answer

A) True 
 B)False

Question 12

A ________ is a relatively new form of partnership whose shares are traded on stock exchanges,just like a corporation's shares.

Accepted Answer

A) limited liability partnership (LLP) 
B) master limited partnership (MLP) 
C) general partnership 
D) limited partnership 
A) limited liability partnership (LLP) 
B) master limited partnership (MLP) 
C) general partnership 
D) limited partnership

Question 13

Marco is opening a new computer repair shop.He is owner and sole employee.He has paid the appropriate fees and licensing costs and begun his business.This is an example of a(n):

Accepted Answer

A) S corporation. 
B) partnership. 
C) corporation. 
D) sole proprietorship. 
A) S corporation. 
B) partnership. 
C) corporation. 
D) sole proprietorship.

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

What kinds of companies would benefit most from S corporation status? Least?

Accepted Answer

S corporation status is usually benefici

Question 16

One disadvantage of the partnership form of ownership is the great potential for personality and authority conflicts.

Accepted Answer

A) True 
 B)False

Question 17

The sole proprietorship is the form of ownership with the least ability to accumulate capital.

Accepted Answer

A) True 
 B)False

Question 18

Each partner in a limited liability partnership is a limited partner; there are no general partners.

Accepted Answer

A) True 
 B)False

Question 19

The sole proprietorship is the easiest form of ownership to create,but once formed,it is subject to the greatest number of regulations.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following issues would influence an entrepreneur's choice of a form of business ownership?

Accepted Answer

A) Tax considerations 
B) Management succession plans 
C) Liability exposure 
D) All of the above 
A) Tax considerations 
B) Management succession plans 
C) Liability exposure 
D) All of the above

Outline the incorporation process.

Which of the following is required to form a partnership?

Of all U.S.business firms,sole proprietorships are the most common,accounting for approximately 71 percent of businesses.

Income from a joint venture is taxed as the income from a(n):

A limited liability company cannot have any more than two of the following corporate characteristics: limited liability,continuity of life,free transferability of interest,and centralized management.

A corporation formed in Taiwan doing business in the United States is a foreign corporation.

In a partnership,the business itself is subject to federal income tax.

A business with more than five owners must be a corporation.

Which of the following is not true of a limited liability partnership?

A general partner is personally liable only for the amount of money he has invested in the partnership.

There is no limit to the number of general partners a partnership may have,but it must have at least one general partner.

A ________ is a relatively new form of partnership whose shares are traded on stock exchanges,just like a corporation's shares.

Marco is opening a new computer repair shop.He is owner and sole employee.He has paid the appropriate fees and licensing costs and begun his business.This is an example of a(n):

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

What kinds of companies would benefit most from S corporation status? Least?

One disadvantage of the partnership form of ownership is the great potential for personality and authority conflicts.

The sole proprietorship is the form of ownership with the least ability to accumulate capital.

Each partner in a limited liability partnership is a limited partner; there are no general partners.

The sole proprietorship is the easiest form of ownership to create,but once formed,it is subject to the greatest number of regulations.

Which of the following issues would influence an entrepreneur's choice of a form of business ownership?

The Foundations of Entrepreneurship

Inside the Entrepreneurial Mind: From Ideas to Reality

Designing a Competitive Business Model and Building a Solid Strategic Plan

Conducting a Feasibility Analysis and Crafting a Winning Business Plan

Franchising and the Entrepreneur

Buying an Existing Business

Building a Powerful Marketing Plan

E-Commerce and the Entrepreneur

Pricing Strategies

Creating a Successful Financial Plan

Managing Cash Flow

Sources of Financing: Debt and Equity

Choosing the Right Location and Layout

Global Opportunities

Building a Team and Management Succession

Filters

Exam 5: Forms of Business Ownership

Outline the incorporation process.

Which of the following is required to form a partnership?

Of all U.S.business firms,sole proprietorships are the most common,accounting for approximately 71 percent of businesses.

Income from a joint venture is taxed as the income from a(n):

A limited liability company cannot have any more than two of the following corporate characteristics: limited liability,continuity of life,free transferability of interest,and centralized management.

A corporation formed in Taiwan doing business in the United States is a foreign corporation.

In a partnership,the business itself is subject to federal income tax.

A business with more than five owners must be a corporation.

Which of the following is not true of a limited liability partnership?

A general partner is personally liable only for the amount of money he has invested in the partnership.

There is no limit to the number of general partners a partnership may have,but it must have at least one general partner.

A ________ is a relatively new form of partnership whose shares are traded on stock exchanges,just like a corporation's shares.

Marco is opening a new computer repair shop.He is owner and sole employee.He has paid the appropriate fees and licensing costs and begun his business.This is an example of a(n):

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

What kinds of companies would benefit most from S corporation status? Least?

One disadvantage of the partnership form of ownership is the great potential for personality and authority conflicts.

The sole proprietorship is the form of ownership with the least ability to accumulate capital.

Each partner in a limited liability partnership is a limited partner; there are no general partners.

The sole proprietorship is the easiest form of ownership to create,but once formed,it is subject to the greatest number of regulations.

Which of the following issues would influence an entrepreneur's choice of a form of business ownership?

The Foundations of Entrepreneurship

Inside the Entrepreneurial Mind: From Ideas to Reality

Designing a Competitive Business Model and Building a Solid Strategic Plan

Conducting a Feasibility Analysis and Crafting a Winning Business Plan

Franchising and the Entrepreneur

Buying an Existing Business

Building a Powerful Marketing Plan

E-Commerce and the Entrepreneur

Pricing Strategies

Creating a Successful Financial Plan

Managing Cash Flow

Sources of Financing: Debt and Equity

Choosing the Right Location and Layout

Global Opportunities

Building a Team and Management Succession

Filters