Question 1

A limited partner is treated as an investor in a business venture and does not take an active role in managing it.

Accepted Answer

A) True 
 B)False

Question 2

In a partnership,profits (and losses)must be shared according to the ratio of capital originally invested in the partnership.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is not true regarding the limitations of professional corporations?

Accepted Answer

A) Seventy-five percent of the shares of stock must be owned and held by individuals licensed in the profession of the corporation. 
B) At least one of the incorporators,one director,and one officer must be licensed in the profession. 
C) The Articles of Incorporation,in addition to all other requirements,must designate the professional services to be provided by the corporation. 
D) The professional corporation must obtain from the appropriate licensing board a certification that declares the shares of stock are owned by individuals who are duly licensed in the profession. 
A) Seventy-five percent of the shares of stock must be owned and held by individuals licensed in the profession of the corporation. 
B) At least one of the incorporators,one director,and one officer must be licensed in the profession. 
C) The Articles of Incorporation,in addition to all other requirements,must designate the professional services to be provided by the corporation. 
D) The professional corporation must obtain from the appropriate licensing board a certification that declares the shares of stock are owned by individuals who are duly licensed in the profession.

Question 4

"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 5

A partnership agreement defines 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 two 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 two 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 limited partner is treated as an investor in a business venture and does not take an active role in managing it.

In a partnership,profits (and losses)must be shared according to the ratio of capital originally invested in the partnership.

Which of the following is not true regarding the limitations of professional corporations?

"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.

A partnership agreement defines how the partners will be compensated.Normally,

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

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Exam 5: Forms of Business Ownership

A limited partner is treated as an investor in a business venture and does not take an active role in managing it.

In a partnership,profits (and losses)must be shared according to the ratio of capital originally invested in the partnership.

Which of the following is not true regarding the limitations of professional corporations?

"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.

A partnership agreement defines how the partners will be compensated.Normally,

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