Management Quizzes – Homework Answers

When choosing the proper legal form for you business you should take into account all of the following except

Question 1 options:

	How long you plan to operate the business
	Your vision regarding the size of your business
	The level of control you desire
	Business vulnerability to law suits

Question 2 (1 point)

The vast majority of businesses start out as a

Question 2 options:

	General partnership
	Joint venture
	Proprietorship
	Corporation

Question 3 (1 point)

All of the following are reasons to form a partnership

Question 3 options:

	legally difficult to form
	Easy to raise capital
	Specialize skills available from each partner
	Can use ideas and plans of one or more person

Question 4 (1 point)

According to Paul Lemberg, which of the following mistake that can kill a partnership

Question 4 options:

	51/49 partnership
	49/50 partnership
	50/50 partnership
	48/52 partnership

Question 5 (1 point)

A ____ is a business formed and owned by a group of people called stockholders, given special rights, privileges and limited liabilities by law

Question 5 options:

	General partnership
	Limited partnership
	C Corporation
	Corporation

Question 6 (1 point)

The rights duties and responsibilities of a partnership are detail in which of the following

Question 6 options:

	Partnership Agreement
	Bylaws for Partnerships
	Article of Ownership
	Articles of copartnership

Question 7 (1 point)

A ______ agreement, explains how stockholders can buy out each other interest in the article of incorporation

Question 7 options:

	Share swap
	Shareholder
	Buy-sell
	Corporate officer

Question 8 (1 point)

A form of business ownership receiving growing attention in recent years, with fewer than 100 shareholders

Question 8 options:

	LLC’s
	Partnership Charters
	S Corporations
	Governed Directors

Question 9 (1 point)

Other legal forms used by small business, include all of the following except

Question 9 options:

	LLC’s
	LLP’s
	FLAM’s
	PSC

Question 10 (1 point)

If a small business is considering changing it’s initial legal form to another legal form it should consideration all of the following except

Question 10 options:

	The current legal form of the business
	The major risk associated with the change in form
	Is unlimited liability a serious potential problem
	The IRS fee for changing the form of a business

Question 11 (1 point)

The ____ company combines the advantages of a corporation, such as liability protection, with the benefits of a partnership such as tax advantages

Question 11 options:

	Limited-liability
	Limited Partnership
	Profession Service
	Family Limited

Question 12 (1 point)

A form of temporary partnership whereby two or more firms join into a single endeavor to make a profit

Question 12 options:

	Cooperation
	Joint venture
	Fractional ownership
	Nonprofit corporation

Question 13 (1 point)

In a _____ each partner actively participate as an equal in managing the business and being liable for the acts of the other partners

Question 13 options:

	Limited partnership
	partnership
	General partnership
	Copartnership

Question 14 (1 point)

A regular corporation that provides the protection of a limited liability for shareholders, but its earnings are taxed at both the corporate and shareholders levels

Question 14 options:

	S Corporation
	Limited Corporation
	C Corporation
	Corporate Charter

Question 15 (1 point)

One or more general partners conduct the business, while one or more limited partners contribute capital but do not participate in management and are not liable for the debts of the general partners

Question 15 options:

	General partnership
	Limited partnership
	Limited C corporation
	Limited S coporation

Question 16 (1 point)

Which of the following is a disadvantage of a partnership form of a business

Question 16 options:

	Each partner is responsible for the acts of the other partners
	Easy to form
	Can raise more capital
	Division of labor and management responsibilities

Question 17 (1 point)

The instrument by which a corporation is formed under the laws of a given state

Question 17 options:

	Buy-sell agreement
	Corporate charter
	Article of corporation
	Stock holder agreement

Question 18 (1 point)

States what the business can do and provide and provides other organizational and financial information

Question 18 options:

	Corporate charter
	Limited charter
	Partnership charter
	Profession service charter

Question 19 (1 point)

A business organize for the sole purpose of providing professional service for which each shareholder is licensed

Question 19 options:

	Nonprofit corporation
	Professional service corporation
	Limited liability corporation
	Family-limited

Question 20 (1 point)

After Katrina devastated the Gulf Coast, a new housing boom begin, where an individual could by one-eight of a percentage share of an expensive assets

Question 20 options:

	Cooperative ownership
	Fractional ownership
	Fractional joint venture
	none of the above