corporations
The government's permission is required to create: ______. a. sole proprietorships. b. corporations. c. partnerships. d. unincorporated associations.
b
A(n) _______ allows the owners to be taxed like a partnership but with limited liability. a. corporation. b. franchise. c. limited liability company. d. joint venture.
c
The people in a corporation responsible for the management of the business are the: ______. a. partners. b. shareholders. c. board of directors. d. licensees.
c
The principal forms of business organization are: ______. a. sole proprietorships, joint ventures, and corporations. b. unincorporated associations, partnerships, and corporations. c. unincorporated associations, limited partnerships, and corporations. d. sole proprietorships, partnerships, and corporations.
d
A corporation has perpetual life, until one of its shareholder dies.
f
A corporation must have at least two shareholders.
f
Most courts hold that joint ventures are subject to the same principles of law as corporations.
f
The death of a majority shareholder terminates a corporate enterprise.
f
The major disadvantage to investors in a corporation is nearly unlimited personal liability.
f
A corporation is a separate legal entity capable of owning property, contracting, and being sued in its own name.
t
A corporation must file for and maintain the approval of the secretary of state and pay an annual fee to remain incorporated.
t
A franchisee cannot be a corporation.
t
A limited liability company is treated like a partnership under federal tax law and has the limited liability feature of corporations.
t
Business corporations exist to make a profit.
t
Corporations are subject to a form of double taxation.
t
Freedom from liability to third persons dealing with the franchise holder is one of the main reasons that franchisors grant franchises.
t
The process of incorporation involves the expenditure of funds for organizational expenses.
t
Who serve as agents of the corporation and run the "day-to-day" operations of the business? a. officers b. directors c. shareholders d. employees
a
