Question 1

The Federal Trade Commission will not allow the sale of franchises that are unfair to the franchisee.

Accepted Answer

A) True 
 B)False

Question 2

Martin,Leah,and Pablo are considering forming a business.What factors should they consider in making a choice of organization?

Accepted Answer

A)   Ease of creation and operation.
B)   Whether there is personal liability for the owners.
C)   How the owners will be taxed.
D)   All of the above.

Question 3

Corporations have a distinct advantage over other forms of business organization in the area of taxation.

Accepted Answer

A) True 
 B)False

Question 4

LLCs have become popular for all except which of the following reasons:

Accepted Answer

A)   management flexibility.
B)   tax status as a partnership.
C)   uniformity of law.
D)   limited liability.

Question 5

Jill was a limited partner in a retail business that was sued by a customer who fell in the store.The customer claimed the business was negligent in caring for its floors.Which statement best describes Jill's potential liability?

Accepted Answer

A)   Jill has no potential liability to the customer.
B)   Jill can be held personally liable to the customer since she is a partner.
C)   Jill can only be liable to the amount of her investment.
D)   Jill is personally liable, but the woman must first collect from the general partners before collecting from Jill.

Question 6

Debra and Lawrence have an equal partnership.This year,after expenses,the partnership had a profit of $200,000.Debra and Lawrence will each pay taxes on:

Accepted Answer

A)   whatever they receive from the partnership.
B)   $50,000.
C)   $100,000.
D)   None of the above. The partnership itself will pay the taxes on the business's profit.

Exam 31: Starting A Business

Corporations have a distinct advantage over other forms of business organization in the area of taxation.

Correct Answer
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The Federal Trade Commission will not allow the sale of franchises that are unfair to the franchisee.

Correct Answer
verified

Debra and Lawrence have an equal partnership.This year,after expenses,the partnership had a profit of $200,000.Debra and Lawrence will each pay taxes on:

Correct Answer
verified

Jill was a limited partner in a retail business that was sued by a customer who fell in the store.The customer claimed the business was negligent in caring for its floors.Which statement best describes Jill's potential liability?

Correct Answer
verified

LLCs have become popular for all except which of the following reasons:

Correct Answer
verified

Martin,Leah,and Pablo are considering forming a business.What factors should they consider in making a choice of organization?

Correct Answer
verified

Exam 31: Starting A Business

Corporations have a distinct advantage over other forms of business organization in the area of taxation.

Correct AnswerverifiedShow Answer

The Federal Trade Commission will not allow the sale of franchises that are unfair to the franchisee.

Correct AnswerverifiedShow Answer

Debra and Lawrence have an equal partnership.This year,after expenses,the partnership had a profit of $200,000.Debra and Lawrence will each pay taxes on:

Correct AnswerverifiedShow Answer

Jill was a limited partner in a retail business that was sued by a customer who fell in the store.The customer claimed the business was negligent in caring for its floors.Which statement best describes Jill's potential liability?

Correct AnswerverifiedShow Answer

LLCs have become popular for all except which of the following reasons:

Correct AnswerverifiedShow Answer

Martin,Leah,and Pablo are considering forming a business.What factors should they consider in making a choice of organization?

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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Correct Answer
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