True/False
Indicate whether the statement is true or
false.
|
|
|
1.
|
A corporation is a separate legal entity.
|
|
|
2.
|
The actions of one partner are legally binding for the other partners, including
payments of any debt.
|
Multiple Choice
Identify the choice that best completes the
statement or answers the question.
|
|
|
3.
|
Which is NOT an advantage of a Sole Proprietorship?
a. | It is relatively easy to start. | b. | You get to share decision making with
others. | c. | You’re entitled to all of the profits of the business. | d. | Usually there are
less taxes and less government regulation. |
|
|
|
4.
|
Which business type is characterized by having just one owner?
a. | Sole Proprietorship | c. | Investor-Oriented Corporation | b. | Partnership | d. | Cooperative Corporation |
|
|
|
5.
|
The least common form of business is the.......
a. | Sole Proprietorship | c. | Investor-Oriented Corporation | b. | Partnership | d. | Cooperative Corporation |
|
|
|
6.
|
Which is NOT a disadvantage of a Investor-Oriented Corporation?
a. | Limited liability for each owner | b. | Difficult to set-up | c. | More scrutinized by
government regulation | d. | Can be very complex, especially when dealing
with accounting and record keeping |
|
Completion
Complete each statement.
|
|
|
7.
|
There are generally two forms of partnerships: General Partnerships and
____________________________ partnerships.
|
|
|
8.
|
A legal agreement between two or more people to be responsible for a business is
a _________________________.
|
Short Answer
|
|
|
9.
|
Define: Unlimited
Liability
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
|
|
|
10.
|
Define: Limited
Liability
_____________________________________________________________________
_____________________________________________________________________
_____________________________________________________________________
|