chapter 9- legal issues with a new business

Besides sole proprietorships, which of the following business forms requires the business debt to flow directly to the owner(s)?

General partnership

Subchapter S and Subchapter C Corporations take their names from subchapters in the ______ Code

Internal Revenue

What are the two broad categories of partnerships?

- General - Limited

Which of the following are the three basic types of legal business organization?

- Partnership - Sole proprietorship - Corporation

Which of the following are benefits of a Subchapter S Corporation?

- Relatively easy to form compared with Subchapter C - Legitimacy in the market as a more established form of business - Limited liability for the owners - Consolidation of business and personal income for tax benefits

In which of the following business forms do the business debts flow directly to the owner(s)?

- Sole proprietorship - General partnership

Which of the following are true about the Uniform Partnership Act and the Revised Uniform Partnership Act?

- Their provisions do not cover issues like non-compete agreements. - They are an effective means to handle the basics of partnership.

Which of the following is NOT one of the three basic types of legal business organization?

Franchise

Which form of business involves two or more individuals sharing unlimited liability in a business venture?

General partnership

General and limited are two broad categories of _____

Partnership

A more complex business form that has two or more people sharing unlimited liability in a new business venture is called a general ______

Partnerships

Which type of legal business organization is characterized by the fact that the person who owns the business and the business itself are treated as the same entity?

Sole proprietorship

Which type of legal business organization is the simplest form to establish?

Sole proprietorship

True or false: A partnership will be governed by either the Uniform Partnership Act or the Revised Uniform Partnership Act if the partnership agreement is not developed and signed.

True

True or false: If a corporation suffers substantial losses, the founder(s) will lose only his or her investment in the business.

True