LAW102_Session 12_HiepTH9

There are no formalities to being and operating a sole proprietorship.

• True
• False

The purpose of Fictitious Name Registration Statutes is to collect tax.

• True
• False

The biggest disadvantage of a sole proprietorship is that it may not continue after the owner's death.

• True
• False

Any person competent to make a contract has the competence to be a partner.

• True
• False

A partnership can only be formed to run a lawful business.

• True
• False

The main disadvantage of a corporation is that the people who own or control a majority of the voting stock have the sole voice in management.

• True
• False

A corporation does not have an existence separate and apart from the existence of its individual members.

• True
• False

A corporate investor can never be held personally liable.

• True
• False

A partnership in which one or more partners' maximum liability for the firm's debts is the amount of their investment.

• Limited partnership
• General partner
• Secret partner
• Trading partnership

A partner actively and openly engaged in the business and held out to everyone as a partner.

• Dormant partner
• Limited partnership
• General partner
• Secret partner