What does GAAP stand for?

• Generally Accepted Accounting Principles
• Generally Available Access Protection
• Generally Accepted Attorney-Client Privilege
• None of these

Corporations that declare stock splits usually do this when:

• The price/share of the company has increased
• The corporation wants to lower the per share price so that more investors are able to afford it
• The price/share of the company has decreased
• The corporation wants to increase the per share price so that more investors are interested in buying the stock

When corporations declare 2:1 stock splits, ____

• The price/share of the company normally increases
• The number of shares doubles
• The price/share of the company normally decreases
• The number of shares is cut in half

Sole proprietorships are the most popular form of business ownership, accounting for almost 3/4 of all businesses.

• True
• False

True or False. Sole proprietorships are the most profitable form of business ownership, accounting for about 3/4 of all business revenue.

• True
• False

True or False. Corporations are the most profitable form of business ownership, accounting for about 3/4 of all business revenue.

• True
• False

True or False. In a sole proprietorship, the owner has limited liability.

• True
• False

True or False. In a sole proprietorship, the owner has unlimited liability, meaning they are personally responsible for all debts, losses, and liabilities of the business.

• True
• False

True or False: Partnerships are usually more complex to form than corporations.

• True
• False

True or False. Partnerships are generally easier to form than corporations, because they have fewer legal requirements.

• True
• False