Chapter 10 - Managing the Form of Business Ownership

New businesses almost always fail for purely financial reasons.

• True

• False

A business plan helps entrepreneurs see the risks and responsibilities involved in starting a business.

• True

• False

Financing the business is one of the responsibilities of the business owner.

• True

• False

The most common form of business ownership is the partnership.

• True

• False

• True

• False

A partnership could be owned by as many as ten or more partners.

• True

• False

Corporations usually have a tax advantage over partnerships.

• True

• False

If one partner is unable to pay his or her portion of the business’s debts, the other partners must pay it.

• True

• False

A disadvantage of a partnership that fails is that a partner can lose personal assets in addition to the amount of money invested in the business.

• True

• False

If a partner enters into a contract against the wishes of the other partners, the other partners are legally responsible for the contract.

• True

• False