WorksheetsForms of Business Organization
Total questions: 20
Worksheet time: 10mins
Unlimited personal responsibility for all debts and for other liabilities that the business may incur is only possible in a sole proprietorship form of business.
true
false
Limited partners do not usually share in the managerial control of the business.
true
false
When one partner is served with a summons and complaint against the firm, all the partners are deemed to have received the notice, even if they are not informed.
true
false
The partnership and all partners are liable when any partner commits a tort while acting within the scope of the firm's business.
true
false
A corporation that files for bankruptcy must be dissolved.
true
false
Of the three principal forms, the simplest, most flexible, and easiest to start is the sole proprietorship.
true
false
The directors have a fiduciary duty to the corporation.
true
false
The biggest disadvantage of a corporation us the inability to transfer ownership rights in it.
true
false
A corporation cannot acquire and hold stock in other corporations.
true
false
The major advantage of the corporate form over the partnership form us in the way the corporate form is taxed.
true
false
Each partner has the ______ to carry on the business.
agent
equal
authority
creditor
A _____ partner is liable for both existing and new debts.
new
equal
agent
unanimous
A partner who _____ is still liable for the firm's debts.
losses
compete
withdraws
borrow
Each partner acts as a(n) ____ for the firm.
agent
equal
new
authority
_______ agreement of the partners is required before a written partnership agreement can be changed.
Unanimous
compete
equal
agent
A minor entering into a partnership agreement
retains all the rights and privileges of a minor
can only function as a limited partner
cannot plead minority as defense if sued
none of these
A aprtner who invest more capital, brings in more business, or works longer and harder than his or her associates is entitled to
a larger percentage of the business
a larger share of the profits
extra pay
no extra compensation unless all partners agree
The application for incorporation filed with a state government is termed the
articles of incorporation
business judgement rule
bylaws
stock certificate
A corporation has the power
of perpetual succession
to make its own bylaws
to use any legal means to conduct authorized business
all of these
Which of the following statements regarding a limited partnership is NOT true?
one partner must be a general partner with limited liability
one partner must be a general partner with unlimited liability
one or more partners may have limited liability to the extent of their investment
none of these
