Question 1

While corporations account for the majority of businesses in the United States,they represent a small minority of profits.

Accepted Answer

A) True 
 B)False

Question 2

The decision-making process in a partnership tends to be faster when the partnership is

Accepted Answer

A)  multifaceted.
B)  small.
C)  foreign.
D)  domestic.
E)  large.F) A) and D)
G) A) and C)

Question 3

The income earned by sole proprietorships is

Accepted Answer

A)  taxed twice.
B)  not taxable.
C)  taxed as personal income.
D)  too high.
E)  audited less often than others.F) B) and C)
G) D) and E)

Question 4

Shark repellant is a method of thwarting a corporate takeover in which management requires a large majority of stockholders to approve the takeover.

Accepted Answer

A) True 
 B)False

Question 5

Sole proprietorships typically employ fewer than 50 people.

Accepted Answer

A) True 
 B)False

Question 6

The following is an advantage of a sole proprietorship:

Accepted Answer

A)  limited sources of funds
B)  profits are not shared
C)  limited liability
D)  ease of hiring qualified employees
E)  owner's role as a generalistF) A) and D)
G) A) and C)

Question 7

Sole proprietorships are taxed as

Accepted Answer

A)  A partnership
B)  Individual owner's income is taxed
C)  Shareholders are taxed
D)  Corporations
E)  Depends on the kind of sole proprietorship formedF) D) and E)
G) C) and E)

Question 8

The government usually will scrutinize high-profile mergers and acquisitions to ensure that they are not creating monopolies.

Accepted Answer

A) True 
 B)False

Question 9

All of the following are advantages of a corporation except

Accepted Answer

A)  limited liability.
B)  lower frequency of taxation.
C)  perpetual life of organization.
D)  ease of transfer of ownership.
E)  external funding sources.F) All of the above
G) D) and E)

Question 10

Partnerships have fewer regulatory controls than corporations.

Accepted Answer

A) True 
 B)False

Question 11

Joint ventures are popular in situations that call for

Accepted Answer

A)  reduced regulations.
B)  cooperation among farmers or ranchers.
C)  unlimited liability.
D)  large investments.
E)  small investments.F) All of the above
G) A) and E)

Question 12

A business's legal form of organization has no effect on how much taxes it pays.

Accepted Answer

A) True 
 B)False

Question 13

The type of corporation represented by organizations such as the National Aeronautics and Space Administration (NASA) and the U.S.Postal Service is called

Accepted Answer

A)  private.
B)  quasi-private.
C)  public.
D)  quasi-public.
E)  private-public.F) B) and E)
G) A) and E)

Question 14

The organizational form that many consider to be a blend of the best characteristics of corporations,partnerships,and sole proprietorships is the

Accepted Answer

A)  joint venture.
B)  cooperative.
C)  C corporation.
D)  S corporation.
E)  limited liability company.F) A) and B)
G) None of the above

Question 15

Which of the following is not a source of funds for a sole proprietorship?

Accepted Answer

A)  Bank loans
B)  Family members
C)  Personal funds
D)  Selling stock or issuing bonds
E)  Small Business AdministrationF) None of the above
G) A) and E)

Exam 4: Options for Organizing Business

Joint ventures are popular in situations that call for

Correct Answer
verified

Sole proprietorships typically employ fewer than 50 people.

Correct Answer
verified

A business's legal form of organization has no effect on how much taxes it pays.

Correct Answer
verified

Partnerships have fewer regulatory controls than corporations.

Correct Answer
verified

The following is an advantage of a sole proprietorship:

Correct Answer
verified

The organizational form that many consider to be a blend of the best characteristics of corporations,partnerships,and sole proprietorships is the

Correct Answer
verified

The type of corporation represented by organizations such as the National Aeronautics and Space Administration (NASA) and the U.S.Postal Service is called

Correct Answer
verified

The government usually will scrutinize high-profile mergers and acquisitions to ensure that they are not creating monopolies.

Correct Answer
verified

Which of the following is not a source of funds for a sole proprietorship?

Correct Answer
verified

Sole proprietorships are taxed as

Correct Answer
verified

All of the following are advantages of a corporation except

Correct Answer
verified

The income earned by sole proprietorships is

Correct Answer
verified

The decision-making process in a partnership tends to be faster when the partnership is

Correct Answer
verified

While corporations account for the majority of businesses in the United States,they represent a small minority of profits.

Correct Answer
verified

Shark repellant is a method of thwarting a corporate takeover in which management requires a large majority of stockholders to approve the takeover.

Correct Answer
verified

Exam 4: Options for Organizing Business

Joint ventures are popular in situations that call for

Correct AnswerverifiedShow Answer

Sole proprietorships typically employ fewer than 50 people.

Correct AnswerverifiedShow Answer

A business's legal form of organization has no effect on how much taxes it pays.

Correct AnswerverifiedShow Answer

Partnerships have fewer regulatory controls than corporations.

Correct AnswerverifiedShow Answer

The following is an advantage of a sole proprietorship:

Correct AnswerverifiedShow Answer

The organizational form that many consider to be a blend of the best characteristics of corporations,partnerships,and sole proprietorships is the

Correct AnswerverifiedShow Answer

The type of corporation represented by organizations such as the National Aeronautics and Space Administration (NASA) and the U.S.Postal Service is called

Correct AnswerverifiedShow Answer

The government usually will scrutinize high-profile mergers and acquisitions to ensure that they are not creating monopolies.

Correct AnswerverifiedShow Answer

Which of the following is not a source of funds for a sole proprietorship?

Correct AnswerverifiedShow Answer

Sole proprietorships are taxed as

Correct AnswerverifiedShow Answer

All of the following are advantages of a corporation except

Correct AnswerverifiedShow Answer

The income earned by sole proprietorships is

Correct AnswerverifiedShow Answer

The decision-making process in a partnership tends to be faster when the partnership is

Correct AnswerverifiedShow Answer

While corporations account for the majority of businesses in the United States,they represent a small minority of profits.

Correct AnswerverifiedShow Answer

Shark repellant is a method of thwarting a corporate takeover in which management requires a large majority of stockholders to approve the takeover.

Correct AnswerverifiedShow Answer

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