WorksheetsEcon Ch 6
Total questions: 20
Worksheet time: 10mins
Name
Class
Date
1.
A business license is a document issued by a local government unit that allows business activities within a certain geographic area.
a)
True
b)
False
2.
One of the negative things about proprietorships is that business owners have unlimited liability for what the business does
a)
True
b)
False
3.
Like the sole proprietorship, the owners of a limited liability company pay taxes on the income they receive from the business after the company pays taxes on its profits.
a)
True
b)
False
4.
One of the obstacles to forming a general partnership is that the general partnership agreement is complex with confusing restrictions that vary from state to state.
a)
True
b)
False
5.
The most serious disadvantage of a general partnership is the unlimited liability of both general partners.
a)
True
b)
False
6.
A limited partner is entitled to a part of the profits but does not have management or daily responsibilities.
a)
True
b)
False
7.
One common characteristic of limited liability partnerships is that they provide a “full shield” of protection from claims against the company.
a)
True
b)
False
8.
A corporation can be sued, own property, and borrow money.
a)
True
b)
False
9.
All corporations are regulated by the Securities and Exchange Commission (SEC).
a)
True
b)
False
10.
Preferred stockholders get dividends before common stockholders.
a)
True
b)
False
11.
A(n) _____ corporation is organized to sell stock to the general public.
a)
A
b)
S
c)
C
d)
LLC
12.
A(n) _______________ corporation is a small business entity that is created under state laws and does not sell stock to the general public.
a)
S
b)
LLP
c)
C
d)
Private
13.
The period of economic growth following the Civil War is called the _____.
a)
Era of Mass Production
b)
Gilded Age
c)
Colonial Period
d)
Factory Era
14.
A(n) _______________ is a business owned and managed by a single person
a)
corporation
b)
partnership
c)
limited liability company
d)
sole proprietorship
15.
_______________ allows business owners to write off expenses for costs that are related to the business.
a)
An S corporation
b)
Limited liability
c)
A business tax deduction
d)
Branding
16.
In a(n) _____ partnership, all partners will help manage the company and share in the profits or losses from the business.
a)
general
b)
S
c)
limited
d)
limited liability
17.
A(n) ____ corporation is a large business that is closed to public investment.
a)
C
b)
private
c)
limited liability
d)
S
18.
In a limited liability company (LLC) the _____.
a)
owners pay taxes on the income they
receive from the business, but there is no separate tax on the business
itself
b)
ownership is limited to five owners or less
c)
owners create a type of corporation
d)
owners’ personal assets are not at risk
unless the company is the target of a lawsuit
19.
C corporations are NOT _____.
a)
more numerous than proprietorships and partnerships
b)
the most common types of corporations in
the United States
c)
sold on the stock exchanges and stock
markets
d)
regulated by the Securities and Exchange
Commission (SEC)
20.
The _____ is NOT a nonprofit corporation
a)
Boy Scouts of America
b)
Coca-Cola Company
c)
Red Cross
d)
United Way
100 %
