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Corporation

Total questions: 8

Worksheet time: 2mins

Name
Class
Date
1.

What is a corporation ?

a)

A company or group of people that act as one single person

b)

A business where 2 separate companies work together to start another one off

c)

An unincorporated business owned by one person

d)

A business owned by 2 or more individuals

2.

What is a corporate charter ?

a)

A document used by LLC and corporations that outlines financial and functional decisions

b)

An application filed for an employer identification number

c)

A written document filed by a corporation to a US State

d)

A nondisclosure agreement

3.

What is one advantage of owning a corporation?

a)

Income can be taxed twice

b)

Shareholders are liable to any judgments against a corporation

c)

Corporations cant raise funds by selling shares

d)

Shareholders risk equity in a corporation

4.

What are the disadvantages of owning a corporation?

a)

Double taxation

b)

Independent management

c)

Unlimited life

d)

Excessive tax filings

5.

what are the advantages of owning a corporation?

a)

independently liable

b)

no income tax

c)

limited liability

d)

pass through

6.

What is one disadvantage of owning a corporation?

a)

Limited of one class of stock

b)

Pass through

c)

Limited liablity

d)

No limit to life

7.

What is an example of a corporation?

a)

Wendys

b)

Apple and Mastercard

c)

Bank of America

d)

Salvation Army

8.

what is an example of a non-corporation?

a)

UPS

b)

Ikea

c)

Yahoo

d)

Google