Forms of Business Ownership Math Quiz

You own 5% of Corporation A. Corporation A owns 30% of Corporation B. What percentage of Corporation B do you own through your ownership in Corporation A?

• 0.5%

• 1.0%

• 1.5%

• 15%

You make $67,321 and pay taxes as a partnership at a rate of 25%. How much do you owe in taxes?

• $16,830.25 

• $18,485.33

• $22,573.95

• $32,364.53

You are required to pay quarterly estimates of the tax liability for your company. You expect the liability to be $36,450 for the full year. If you make even quarterly payments, how much will the payments be?

• $5,735.50

• $7,295.50

• $9,112.50

• $10,438.50

You may have to pay a penalty if, during the year, you pay less than 90% of the taxes you owe for that year. If you expect to owe $12,567, how much do you need to pay during the year to avoid the penalty?

• $1,256.70

• $5,398.40

• $8,429.40

• $11,310.30

A company has a market capitalization of $20,000,000. It has 30% of its market cap sold under preferred stock and 70% under common stock? How much money of the market capitalization is preferred stock?

• $4,100,000

• $6,000,000

• $14,000,000

• $20,000,000

The company announces a three-for-one stock split. You will wind up with 1,500 shares after the split. How many shares did you have before the split?

• 500

• 1,000

• 1,500

• 4,500

A corporation announces a dividend of $.10 per share. If you own 1,500 shares of stock, how much money in dividends will you receive?

• $15

• $37

• $150

• $250

A partnership with 10 partners distributes its profits of $450,000 equally to the partners except partner #10 who receives 5% of the total profit. How much do partners #1-9 get equally?

• $22,500

• $45,000

• $47,500

• $427,500

Your company is a partnership with you and one other owner, each with a 50% stake. The company has assets of $247,965 and liabilities of $410,920. You both decide to liquidate the company. Assuming you can sell the assets at their listed value, how much will you be personally liable for?

• $0

• $68,943

• $81,478

• $162,955

You are in a partnership with 3 other partners, all with equal stake in the company. Your company is expecting profits to be stable at $250,000 per year for the foreseeable future. Another partner offers you $400,000 to buy out your share. Evaluating this decision financially over a 5 year window, is the offer worth it? For simplicity, you can assume that $250,000 in 5 years is worth the same as $250,000 today (that is, there is no inflation and you are not discounting for the time value of money).

• Yes

• No

• Can't tell