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Starting and Ending a Corporation ACNT 2 3.2.2

Total questions: 10

Worksheet time: 5mins

Name
Class
Date
1.

Susan wants to incorporate her photography business. What is the first step she should take in becoming incorporated?

a)

Choosing a name

b)

Filing with the IRS for an Employer Identification Number (EIN)

c)

Filling out the articles of incorporation

d)

Writing the corporate bylaws

2.

What can Susan do to make sure her proposed business name is available to incorporate in her state?

a)

Check the telephone directory to see if the name is in use

b)

Search the Secretary of State's name database for similar names

c)

Travel around town looking at business signs to see if the business name is in use

d)

Search on the internet for the business name

3.

Susan has determined her business name is available. What is the next step she should take for incorporating her business?

a)

File with the IRS for an employee identification number (EIN) under the name of her business

b)

Create business cards with the name of her business

c)

Gather necessary stakeholders, including a board of directors

d)

Determine which corporate structure she will incorporate under

4.

Which document is written by Susan and her corporation's other owners at the time of its founding?

a)

Certificate of incorporation

b)

Directors' and shareholders' resolutions

c)

Shareholders' agreements

d)

Corporate bylaws

5.

What should Susan do after she has written her corporation's bylaws?

a)

Decide which type of corporation to form

b)

Determine employee wages and benefits

c)

Register her employee identification number (EIN) with the IRS

d)

Complete articles of incorporation

6.

Susan needs to file the articles of incorporation for her business. Where can she find the paperwork needed to do so?

a)

The public library

b)

The Secretary of State's website

c)

The local Social Security office

d)

The IRS's website

7.

What will Susan need to do with the articles of incorporation after she completes them?

a)

File them with the IRS

b)

Sign and mail them to the city council with applicable fees

c)

Sign and mail them to the Secretary of State with applicable fees

d)

File them with the Better Business Bureau

8.

To determine additional requirements for the state she will be doing business in, Susan should visit the website of the _____.

a)

Internal Revenue Service

b)

Secretary of State

c)

Social Security Administration

d)

U.S. Small Business Administration

9.

Corporate governance is composed of all of the following EXCEPT _____.

a)

financial advisers

b)

a board of directors

c)

executives

d)

governance documents

10.

Which type of corporation passes corporate income, losses, deductions, and credit through to their shareholders for federal tax purposes?

a)

C corporation

b)

S corporation

c)

Limited liability company (LLC)

d)

Not-for-profit organization