Forms Of Business : True/False Questions
A Certificate of incorporation should not include the purpose of the corporation.
False
A Corporation can be owned by as few as one person and as many as thousands of people.
False
A disadvantage of a partnership that fails is that the partner can lose personal assets in addition to the amount of money invested in the business.
False
A nonprofit corporation pays dividends to shareholders.
False
A partnership continues even after one partner dies.
False
A person must own at least ten shares of stock to be considered a stockholder.
False
A stockholder has the same financial responsibility as a partner.
False
All corporations are large in size.
False
Businesses owned by one person usually have enough funds for emergency situations.
False
Corporations are many in number and generally large in size.
False
Corporations usually have a tax advantage over partnerships
False
Each stockholder has only one vote regardless of the number of shares owned.
False
Most successful entrepreneurs start their businesses when they are about 30 years old.
False
Stockholders decide when dividends are to be distributed.
False
The most common form of business ownership is a partnership.
False
The stockholders make up the ruling body of a corporation.
False
The top officer of a corporation is referred to as a CFO.
False
A Corporation can be sued in its own name.
True
A Corporation can make contracts and borrow money.
True
A Partnership could be owned by as many as ten or more partners.
True
A business plan helps entrepreneurs see the risks and responsibilities involved in starting a business.
True
Corporations sell more goods and services annually than do proprietorships and partnerships combined.
True
Financing the business is one of the responsibilities of the business owner.
True
If a partner enters into a contract against the wishes of the other partners, the other partners are legally responsible for the contract.
True
If one partner is unable to pay his or her portion of the business's debts, the other partners must pay it.
True
In a proprietorship, the owner is entitled to all profits earned by the business.
True
In a sole proprietorship, creditors have a legal claim to the business's assets before the owner.
True
It is difficult to withdraw from a partnership.
True
Stockholders elect members of the board of directors.
True
To form a corporation, a charter is needed.
True
Since a new business has not yet made a profit, a financial plan should not be included in the business plan.
false
