Chapter 6
unlimited
Sole proprietors have _____ liability for the debts of their companies
The owners are not personally responsible for the obligations of a company.
Which of the following is a consequence of a corporation being a separate entity from its owners?
there is difficulty in withdrawing from the company.
A disadvantage of a general partnership is that:
they have limited ability to raise the funds necessary to finance growth.
A key reason most sole proprietorships remain relatively small is that:
a board of directors
The individuals who are elected by stockholders of a corporation to represent their interests are known as _____.
False
The owner of a sole proprietorship must share any after-tax profits with the company's shareholders. T/F
True
There is no limit on the number of partners who can participate in a general partnership. T/F
They are made to pay an annual franchise tax in many states.
Which of the following is a characteristic of limited liability companies (LLCs)?
The franchisee has no flexibility as it is required to follow the franchisor's procedures to the letter.
Which of the following is a disadvantage of franchising?
The shareholders have limited liability in the firm.
Which of the following is an advantage of a C corporation?
