Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

When buying a business, an entrepreneur can usually purchase equipment and fixtures at prices well below their book value.

Accepted Answer

A) True 
 B)False

Question 3

Outline the incorporation process.

Accepted Answer

When incorporating, a Certificate of Inc

Question 4

What is a sole proprietorship? Explain the advantages and the disadvantages of a sole proprietorship.

Accepted Answer

A sole proprietorship is a business owne

Question 5

All of the following are advantages of a partnership except ________.

Accepted Answer

A)  partnerships are relatively easy and inexpensive to establish 
B)  partnerships avoid double taxation since the partnership itself is not subject to federal taxation 
C)  partnerships have the greatest ability to accumulate capital of all of the forms of ownership 
D)  partnerships offer the ability to combine the management and business skills of two or more people in a complementary and powerful fashion 
A)  partnerships are relatively easy and inexpensive to establish 
B)  partnerships avoid double taxation since the partnership itself is not subject to federal taxation 
C)  partnerships have the greatest ability to accumulate capital of all of the forms of ownership 
D)  partnerships offer the ability to combine the management and business skills of two or more people in a complementary and powerful fashion

Question 6

The due diligence process in analyzing and evaluating an existing business can be just as time consuming as the development of a comprehensive business plan for a start-up.

Accepted Answer

A) True 
 B)False

Question 7

The reason an entrepreneur should conduct a self-audit of her/his skills, abilities, and interests is to help focus on those businesses that will best "fit."

Accepted Answer

A) True 
 B)False

Question 8

State law requires that individuals creating a partnership file the Articles of Partnership with the Secretary of State.

Accepted Answer

A) True 
 B)False

Question 9

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

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

A prospective buyer should have an attorney thoroughly investigate all of the assets for sale in a business and their lien status before buying any business.

Accepted Answer

A) True 
 B)False

Question 12

If a business has a lien against any of its assets at the time of the sale, the buyer must assume them and is financially responsible for them.

Accepted Answer

A) True 
 B)False

Question 13

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 14

Stockholders in the corporation have the same kind of liability as general partners in a partnership.

Accepted Answer

A) True 
 B)False

Question 15

A common denominator in many partnership disputes is the lack of a written agreement clearly spelling out the roles, rights, and responsibilities of each partner.

Accepted Answer

A) True 
 B)False

Question 16

What is a partnership? Explain the advantages and the disadvantages of a partnership.

Accepted Answer

A partnership is an association of two o

Question 17

The most common form of business ownership that is also the simplest to create is the ________.

Accepted Answer

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

Question 18

A limited liability company is most like a(n) ________.

Accepted Answer

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

Question 19

The partnership, like the proprietorship, avoids the disadvantage of double taxation.

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

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

When buying a business, an entrepreneur can usually purchase equipment and fixtures at prices well below their book value.

Outline the incorporation process.

What is a sole proprietorship? Explain the advantages and the disadvantages of a sole proprietorship.

All of the following are advantages of a partnership except ________.

The due diligence process in analyzing and evaluating an existing business can be just as time consuming as the development of a comprehensive business plan for a start-up.

The reason an entrepreneur should conduct a self-audit of her/his skills, abilities, and interests is to help focus on those businesses that will best "fit."

State law requires that individuals creating a partnership file the Articles of Partnership with the Secretary of State.

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

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

A prospective buyer should have an attorney thoroughly investigate all of the assets for sale in a business and their lien status before buying any business.

If a business has a lien against any of its assets at the time of the sale, the buyer must assume them and is financially responsible for them.

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

Stockholders in the corporation have the same kind of liability as general partners in a partnership.

A common denominator in many partnership disputes is the lack of a written agreement clearly spelling out the roles, rights, and responsibilities of each partner.

What is a partnership? Explain the advantages and the disadvantages of a partnership.

The most common form of business ownership that is also the simplest to create is the ________.

A limited liability company is most like a(n) ________.

The partnership, like the proprietorship, avoids the disadvantage of double taxation.

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

The Foundations of Entrepreneurship

Ethics and Social Responsibility: Doing the Right Thing

Inside the Entrepreneurial Mind: From Ideas to Reality

Conducting a Feasibility Analysis and Designing a Business Model

Crafting a Business Plan and Building a Solid Strategic Plan

Franchising and the Entrepreneur

Building a Powerful Bootstrap Marketing Plan

E-Commerce and the Entrepreneur

Pricing and Credit 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 6: Forms of Business Ownership and Buying an Existing Business

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

When buying a business, an entrepreneur can usually purchase equipment and fixtures at prices well below their book value.

Outline the incorporation process.

What is a sole proprietorship? Explain the advantages and the disadvantages of a sole proprietorship.

All of the following are advantages of a partnership except ________.

The due diligence process in analyzing and evaluating an existing business can be just as time consuming as the development of a comprehensive business plan for a start-up.

The reason an entrepreneur should conduct a self-audit of her/his skills, abilities, and interests is to help focus on those businesses that will best "fit."

State law requires that individuals creating a partnership file the Articles of Partnership with the Secretary of State.

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

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

A prospective buyer should have an attorney thoroughly investigate all of the assets for sale in a business and their lien status before buying any business.

If a business has a lien against any of its assets at the time of the sale, the buyer must assume them and is financially responsible for them.

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

Stockholders in the corporation have the same kind of liability as general partners in a partnership.

A common denominator in many partnership disputes is the lack of a written agreement clearly spelling out the roles, rights, and responsibilities of each partner.

What is a partnership? Explain the advantages and the disadvantages of a partnership.

The most common form of business ownership that is also the simplest to create is the ________.

A limited liability company is most like a(n) ________.

The partnership, like the proprietorship, avoids the disadvantage of double taxation.

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

The Foundations of Entrepreneurship

Ethics and Social Responsibility: Doing the Right Thing

Inside the Entrepreneurial Mind: From Ideas to Reality

Conducting a Feasibility Analysis and Designing a Business Model

Crafting a Business Plan and Building a Solid Strategic Plan

Franchising and the Entrepreneur

Building a Powerful Bootstrap Marketing Plan

E-Commerce and the Entrepreneur

Pricing and Credit 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