Question 1

A corporation's board of directors

Accepted Answer

A)   is the governing body for corporate activity.
B)   directly manages the corporation.
C)   determines the taxability of dividends.
D)   usually designs the organizational structure of the firm.

Question 2

A stockholder in a Subchapter S corporation

Accepted Answer

A)   is not allowed to vote in elections to choose members of the S corporation's board of directors.
B)   cannot vote by proxy at stockholders' meetings.
C)   cannot become a member of the board of directors.
D)   cannot be a nonresident alien.

Question 3

Which of the following best defines a partnership?

Accepted Answer

A)   A business owned and operated by one person
B)   A voluntary association of two or more persons to carry on, as co-owners, a business for profit
C)   The governing body for corporate activity
D)   An organization in which each owner has limited personal liability

Question 4

The owner of a sole proprietorship

Accepted Answer

A)   owns the business.
B)   bears no risks.
C)   is an employee of the business.
D)   shares profits.

Question 5

A sole proprietorship must be registered with the state to obtain its legal charter.

Accepted Answer

A) True 
 B)False

Question 6

One of the advantages of a sole proprietorship is its continuity.

Accepted Answer

A) True 
 B)False

Question 7

Objectivity is a particularly valuable contribution of outside directors to the small firm.

Accepted Answer

A) True 
 B)False

Question 8

As in a partnership, ownership in a corporation is readily transferable.

Accepted Answer

A) True 
 B)False

Question 9

An ownership interest does not automatically confer a right to act for or to share in the management of a corporation.

Accepted Answer

A) True 
 B)False

Question 10

Some of the benefits of a partnership form of business include the following except

Accepted Answer

A)   sharing workload
B)   sharing financial burdens
C)   adding companionship
D)   reducing personal conflicts

Question 11

Discuss the concept of a balanced management team.

Accepted Answer

A balanced management team assumes a ven...

Question 12

What is the principal advantage of an S corporation, and why is it given this name?

Accepted Answer

A principal disadvantage of a regular co...

Question 13

Any person capable of ____ may legally become a business partner.

Accepted Answer

A)   assenting to liability
B)   contracting
C)   contributing capital
D)   having a claim on assets

Question 14

Which of the following is not a common form of legal organization for a small business?

Accepted Answer

A)   sole proprietorship
B)   sub chapter 5 corporation
C)   partnership
D)   corporation

Question 15

A social network includes the web of relationships that an entrepreneur has with other people.

Accepted Answer

A) True 
 B)False

Question 16

To transfer ownership in a corporation, it is only necessary to transfer shares of stock.

Accepted Answer

A) True 
 B)False

Question 17

The desire for continuity of a business might be one reason to organize as a corporation rather than as a partnership.

Accepted Answer

A) True 
 B)False

Question 18

The death of a majority stockholder of a corporation results in the dissolution of the corporation.

Accepted Answer

A) True 
 B)False

Question 19

A recent IRS report projects that ____ percent of businesses will be established as C corporations in 2009.

Accepted Answer

A)   7
B)   13
C)   21
D)   33

Question 20

Partners must contribute capital or assets to form a partnership.

Accepted Answer

A) True 
 B)False

Exam 8: The Human Resources Plan: Managers, Owners, Allies, and Directors

A corporation's board of directors

Correct AnswerverifiedShow Answer

As in a partnership, ownership in a corporation is readily transferable.

Correct AnswerverifiedShow Answer

Partners must contribute capital or assets to form a partnership.

Correct AnswerverifiedShow Answer

A recent IRS report projects that ____ percent of businesses will be established as C corporations in 2009.

Correct AnswerverifiedShow Answer

Which of the following is not a common form of legal organization for a small business?

Correct AnswerverifiedShow Answer

Which of the following best defines a partnership?

Correct AnswerverifiedShow Answer

An ownership interest does not automatically confer a right to act for or to share in the management of a corporation.

Correct AnswerverifiedShow Answer

Discuss the concept of a balanced management team.

Correct AnswerverifiedA balanced management team assumes a ven...View AnswerShow Answer

To transfer ownership in a corporation, it is only necessary to transfer shares of stock.

Correct AnswerverifiedShow Answer

A sole proprietorship must be registered with the state to obtain its legal charter.

Correct AnswerverifiedShow Answer

The desire for continuity of a business might be one reason to organize as a corporation rather than as a partnership.

Correct AnswerverifiedShow Answer

What is the principal advantage of an S corporation, and why is it given this name?

Correct AnswerverifiedA principal disadvantage of a regular co...View AnswerShow Answer

Some of the benefits of a partnership form of business include the following except

Correct AnswerverifiedShow Answer

A stockholder in a Subchapter S corporation

Correct AnswerverifiedShow Answer

One of the advantages of a sole proprietorship is its continuity.

Correct AnswerverifiedShow Answer

Objectivity is a particularly valuable contribution of outside directors to the small firm.

Correct AnswerverifiedShow Answer

The owner of a sole proprietorship

Correct AnswerverifiedShow Answer

The death of a majority stockholder of a corporation results in the dissolution of the corporation.

Correct AnswerverifiedShow Answer

A social network includes the web of relationships that an entrepreneur has with other people.

Correct AnswerverifiedShow Answer

Any person capable of ____ may legally become a business partner.

Correct AnswerverifiedShow Answer

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A balanced management team assumes a ven...
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A principal disadvantage of a regular co...
View Answer

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