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WorksheetsEnt/Ch 7.1 and 7.2
Total questions: 25
Worksheet time: 13mins
Name
Class
Date
1.
The legal form that offers the most protection to the owner is
a)
sole proprietorship
b)
corporation
c)
joint venture
d)
partnership
2.
Limited liability companies are popular with
a)
large corporations
b)
law and medical firms
c)
C-corporations
d)
family run businesses
3.
Before deciding on the legal form of the business, you should consider your
a)
access to capital
b)
expenses
c)
skills
d)
all of the above
4.
Nonprofit corporations may be set up to benefit
a)
specific groups
b)
charities
c)
the public
d)
all of the above
5.
To decide whether a sole proprietorship is right for you, ask yourself
a)
whether you need investment capital
b)
how much liability protection you need
c)
what effect the business will have on your tax status
d)
all of the above
6.
A business that is owned and operated by one person.
a)
C-corporation
b)
nonprofit corporation
c)
sole proprietorship
d)
partnership
7.
Insurance
a)
liability protection
b)
limited liability
c)
limited liability company
d)
unlimited liability
8.
A partner with unlimited liability.
a)
partnership agreement
b)
silent partner
c)
shareholder
d)
general partner
9.
The most common corporate form.
a)
nonprofit corporation
b)
S-corporation
c)
C-corporation
d)
Franchise
10.
A legal type of ownership that avoids double taxation.
a)
Nonprofit corporation
b)
Franchise
c)
C-corporation
d)
S-corporation
11.
Corporate shareholders have this.
a)
partnership agreements
b)
unlimited liability
c)
tax exemptions
d)
limited liability
12.
Corporate owners.
a)
shareholders
b)
general partners
c)
silent partners
d)
proprietors
13.
Profits remain within the corporation.
a)
C-corporation
b)
nonprofit corporation
c)
S-corporation
d)
sole proprietorship
14.
A hybrid legal form for a business.
a)
nonprofit corporation
b)
C-corporation
c)
limited liability company
d)
partnership
15.
A written document between partners to spell out duties and responsibilities.
a)
articles of incorporation
b)
vendor agreement
c)
limited liability agreement
d)
partnership agreement
16.
An advantage of a sole proprietorship is that it is easy and inexpensive to create.
a)
True
b)
False
17.
A partnership is the most common business organization involving more that one owner.
a)
True
b)
False
18.
All partners much sign every contract in a general partnership.
a)
True
b)
False
19.
The sole proprietorship offers the owner protections from liability.
a)
True
b)
False
20.
One of the advantages of a sole proprietorship is that the business pays no income tax.
a)
True
b)
False
21.
When you use your own name of the business, you need a DBA.
a)
True
b)
False
22.
A sole proprietorship with more than one owner is termed a partnership.
a)
True
b)
False
23.
A limited partner has no say over the management of the business.
a)
True
b)
False
24.
A corporation can live beyond the life of its founders.
a)
True
b)
False
25.
A nonprofit corporation makes money primarily for the owner's profit.
a)
True
b)
False
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