C16 - Forms of Ownership

Business Profits or losses are combined with the sole proprietor's other income for income tax purposes.

• True

• False

In a general partnership, each partner is liable for the other partners' actions within the scope of the partnership.

• False

• True

A secret partner has limited liability for the partnership's debt

• True

• False

The biggest advantage to a sole proprietorship is the limited liability regarding losses and lawsuits.

• False

• True

A partner cannot personally transfer ownership of property

• True

• False

Unless otherwise stated in the partnership agreement, partners share equally in the profits.

• True

• False

The difference between a joint venture and a partnership is that there is no ongoing relationship in a joint venture.

• True

• False

A public corporation can be either a C corporation or an S corporation

• True

• False

The articles of incorporation is a legal document filed with the state in order to establish a corporation.

• True

• False

The dissolution of an LLC is similar to a partnership and can occur for any of the same reasons

• False

• True