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WorksheetsBusiness Management Chapter 10 Test Review
Total questions: 42
Worksheet time: 21mins
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
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/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
To form a corporation, a charter is needed.
True
False
A corporation can make contracts, borrow money, and be sued.
True
False
A stockholder in a corporation has the same financial responsibility as a partner in a partnership.
True
False
The stockholders make up the ruling body of a corporation.
True
False
A nonprofit corporation pays small dividends to shareholders.
True
False
A cooperative provides members with both cost and profit advantages they would not have individually.
True
False
Each stockholder has only one vote regardless of the number of shares owned.
True
False
The most common form of business organization is the
proprietorship
partnership
cooperative
corporation
Which of the following statements is true about entrepreneurs?
Entrepreneurs would rather work for others.
Entrepreneurs prefer to assign the decision-making responsibility to employees.
Entrepreneurs usually work hard and for long hours.
Entrepreneurs usually give up quickly when their businesses are not immediately successful.
In a sole proprietorship,
creditors have first claim against assets.
there are no employees.
assets are safe from creditors.
employees share in the liabilities.
The type of business that can be operated suitably as a proprietorship is one that
requires a great amount of capital.
usually does not provide personal services.
usually operates on a large scale.
can be managed by the proprietor or by persons hired by the proprietor.
An advantage of partnerships when compared to proprietorships is
if one partner disagrees with a change, the partnership cannot make the change.
all partners are bound by all contracts made by the partnership.
operations are usually less efficient because of shared management.
more capital is usually available.
In which type of partnership is the liability of a partner limited to the amount of the partner's investment?
limited partnership
restricted partnership
unlimited partnership
unrestricted partnership
In a limited partnership,
all partners must be general partners.
no partners are liable for any of the partnership debts.
all partners must be limited partners.
at least one partner must be a general partner with unlimited liability.
An official document giving power to run a corporation is a
partnership agreement
proxy
charter
business plan
A corporation is authorized to act as if it were a single person by the
federal government
board of directors
state in which it is incorporated
business plan
Ownership of a corporation is measured in
assets
equity
dividends
shares
If the corporation fails, stockholders are responsible for
all of the debts of the corporation
only the amount owed in dividends
only the amount invested in the corporation
only the value of the assets of the corporation
A stockholder who cannot attend a shareholders' meeting can submit votes by
contract
proxy
dividend
waiver
An agreement among two or more businesses to work together to provide a good or service is called a
limited liability partnership
limited liability corporation
joint venture
cooperative
An advantage of corporations in relation to partnerships is that
corporations have tax advantages
corporations have unlimited life
shareholders have unlimited financial liability
shareholders can transfer ownership easily
A written agreement between two or more people identifying how they will add capital, labor, or other assets and divide any profits or share any losses in their business is called a
certificate of incorporation
business plan
charter
Partnership agreement
A nonprofit corporation is an organization that
pays taxes and exist to make a profit
pays taxes and does not exist to make a profit
does not pay taxes and does not exist to make a profit
pays dividends to shareholders
Quasi-public corporations are often supported by
subsidies
stocks
dividends
tariffs
A written document that describes how to achieve the goals of a business.
business plan
balance sheet
charter
partnership agreement
Owner of a corporation.
stockholders
creditors
officer
intrapraneur
Property owned by a business.
assets
liabilities
creditors
officer
Parties who have first claim against assets.
creditors
liabilities
officers
stockholders
A statement of financial position.
balance sheet
business plan
charter
articles of incorporation
Money owed by a business.
liabilities
assets
balance sheet
close corporation
Difference between assets and liabilities.
capital
stock
officer
credit
An employee who is given funds and freedom to create a special unit or department within a company in order to develop a new product, process or service.
intrapraneur
officer
board of directors
creditor
top executive who is hired to manage a business.
officer
intrapraneur
board of directors
shareholder
Corporation that does not offer its shares of stock for public sale.
close corporation
open corporation
limited liability corporation
non-profit organization
