Question 1

To form a corporation a charter is needed.

Accepted Answer

A) True 
 B)False

Question 2

An agreement among two or more businesses to work together to provide a good or service is called a

Accepted Answer

A)   limited liability partnership
B)   limited liability corporation
C)   joint venture
D)   cooperativeE) B) and C)
F) B) and D)

Question 3

If a partner enters into a contract against the wishes of the other partners, the other partners are legally responsible for the contract.

Accepted Answer

A) True 
 B)False

Question 4

Each stockholder has only one vote regardless of the number of shares owned.

Accepted Answer

A) True 
 B)False

Question 5

Match each item with the correct statement below.
-Money owed by a business.

Accepted Answer

A)  Assets
B)  balance sheet
C)  business plan
D)  Capital
E)  charterF) close corporationG) creditorsH) entrepreneurI) income statementJ) intrapreneurK) liabilitiesL) officerM) open corporationN) stockholdersO) F) and G)
P) E) and M)

Question 6

An advantage of corporations in relation to partnerships is that

Accepted Answer

A)   corporations have tax advantages
B)   corporations have unlimited life
C)   shareholders have unlimited financial liability
D)   shareholders can transfer ownership easilyE) A) and D)
F) A) and C)

Question 7

It is difficult to withdraw from a partnership.

Accepted Answer

A) True 
 B)False

Question 8

A written agreement between two or more people identifying how they will add capital, labor, or other assets and divide any profits or share any losses in their business is called a

Accepted Answer

A)   certificate of incorporation
B)   business plan
C)   charter
D)   partnership agreementE) All of the above
F) None of the above

Question 9

Match each item with the correct statement below.
-Owners of a corporation.

Accepted Answer

A)  Assets
B)  balance sheet
C)  business plan
D)  Capital
E)  charterF) close corporationG) creditorsH) entrepreneurI) income statementJ) intrapreneurK) liabilitiesL) officerM) open corporationN) stockholdersO) B) and L)
P) A) and B) N

Question 10

A corporation can make contracts, borrow money, and be sued.

Accepted Answer

A) True 
 B)False

Question 11

Corporations usually have a tax advantage over partnerships.

Accepted Answer

A) True 
 B)False

Question 12

In a limited partnership

Accepted Answer

A)   all partners must be general partners
B)   no partners are liable for any of the partnership's debts
C)   all partners must be limited partners
D)   at least one partner must be a general partner with unlimited liabilityE) B) and C)
F) A) and D)

Question 13

A stockholder has the same financial responsibility as a partner.

Accepted Answer

A) True 
 B)False  False

Question 14

In which type of partnership is the liability of a partner limited to the amount of the partner's investment?

Accepted Answer

A)   limited partnership
B)   unlimited partnership
C)   restricted partnership
D)   unrestricted partnershipE) B) and C)
F) A) and B)

Question 15

One of the main reasons many proprietorships fail within a short time is that

Accepted Answer

A)   the owner lacks needed skills
B)   the owner lacks interest in the business
C)   proprietorships are not able to compete with corporations any longer
D)   proprietorships are not able to compete with partnershipsE) A) and B)
F) A) and C)

Question 16

A corporation is authorized to act as if it were a single person by the

Accepted Answer

A)   federal government
B)   board of directors
C)   state in which it is incorporated
D)   business planE) B) and D)
F) A) and D)

Question 17

A business with a balance sheet showing assets valued at $100,000 and capital valued at $100,000 is in a weak financial position.

Accepted Answer

A) True 
 B)False

Question 18

If assets are valued at $500,000 and capital amounts to $350,000, the liabilities of the business are

Accepted Answer

A)   $850,000
B)   $500,000
C)   $350,000
D)   $150,000E) A) and C)
F) A) and B)

Question 19

An advantage of partnerships when compared to proprietorships is

Accepted Answer

A)   if one partner disagrees with a change, the partnership cannot make the change
B)   all partners are bound by all contracts made by the partnership
C)   operations are usually less efficient because of shared management
D)   more capital is usually availableE) A) and B)
F) A) and C)

Question 20

Ownership of a corporation is measured in

Accepted Answer

A)   assets
B)   equity
C)   dividends
D)   sharesE) None of the above
F) C) and D) D

Exam 10: Managing the Form of Business Ownership

To form a corporation a charter is needed.

Correct AnswerverifiedShow Answer

An agreement among two or more businesses to work together to provide a good or service is called a

Correct AnswerverifiedShow Answer

If a partner enters into a contract against the wishes of the other partners, the other partners are legally responsible for the contract.

Correct AnswerverifiedShow Answer

Each stockholder has only one vote regardless of the number of shares owned.

Correct AnswerverifiedShow Answer

Match each item with the correct statement below. -Money owed by a business.

Correct AnswerverifiedShow Answer

An advantage of corporations in relation to partnerships is that

Correct AnswerverifiedShow Answer

It is difficult to withdraw from a partnership.

Correct AnswerverifiedShow Answer

A written agreement between two or more people identifying how they will add capital, labor, or other assets and divide any profits or share any losses in their business is called a

Correct AnswerverifiedShow Answer

Match each item with the correct statement below. -Owners of a corporation.

Correct AnswerverifiedN

A corporation can make contracts, borrow money, and be sued.

Correct AnswerverifiedShow Answer

Corporations usually have a tax advantage over partnerships.

Correct AnswerverifiedShow Answer

In a limited partnership

Correct AnswerverifiedShow Answer

A stockholder has the same financial responsibility as a partner.

Correct AnswerverifiedFalse

In which type of partnership is the liability of a partner limited to the amount of the partner's investment?

Correct AnswerverifiedShow Answer

One of the main reasons many proprietorships fail within a short time is that

Correct AnswerverifiedShow Answer

A corporation is authorized to act as if it were a single person by the

Correct AnswerverifiedShow Answer

A business with a balance sheet showing assets valued at $100,000 and capital valued at $100,000 is in a weak financial position.

Correct AnswerverifiedShow Answer

If assets are valued at $500,000 and capital amounts to $350,000, the liabilities of the business are

Correct AnswerverifiedShow Answer

An advantage of partnerships when compared to proprietorships is

Correct AnswerverifiedShow Answer

Ownership of a corporation is measured in

Correct AnswerverifiedD

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
N

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
False

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
D