BUS 101 - Chapter 4 Questions

Réussis tes devoirs et examens dès maintenant avec Quizwiz!

Select all advantages of the partnership form of business.

A. More financial resources B. Longer survival C. Pooled skills

What two features characterize a general partnership?

A. all partners share the responsibility for operating the business B. all partners assume liability for the business's debts

Among the reasons that disagreements can ruin a partnership are

A. disagreement over workload B. opposing management styles C. arguments over dividing profits

The attributes of a conventional corporation include that:

A. it is a legal entity B. it is state chartered C. corporate liability is separate from owners

A sole proprietorship has a limited life span unless:

A. it is sold to someone else B. it is taken over by an heir

It is easy to start and end a sole proprietorship because:

A. only one person is involved in the decision to dissolve the business B. it may only require a simple permit or license to start

Select those items considered fringe benefits that people working for a company are likely to receive, but a sole proprietor has to develop on his own:

A. paid sick or vacation leave time B. a pension plan C. paid health insurance

Because of the difficulty in ending a partnership, decisions regarding what two areas should be spelled out in a partnership agreement?

A. when a partner can retire B. how to distribute assets

If you and a friend start a business together, you have started a sole proprietorship.

False

Partnerships are less likely to survive than sole proprietorships.

False

Which is an advantage of the corporate form of business ownership?

Limited liability

Termination of a partnership is difficult without a(n) ______ agreement.

Termination of a partnership is difficult without a(n) ______ agreement.

A disadvantage of a sole proprietorship is limited financial resources.

True

The main advantage of a sole proprietorship is ease of start up.

True

The owner of a sole proprietorship is responsible for developing any fringe benefits they have.

True

To end a sole proprietorship, you simply stop operations.

True

Many people do not like working for someone, so being your own ____ is an advantage of sole proprietorships.

boss, employer, or manager

A state-chartered legal entity with authority to act and have liability separate from its owners is a:

corporation

Partnerships have the advantage over sole proprietorships of pooled knowledge and ____ resources.

financial

Sole proprietors can leave their business to their heirs. This is called:

leaving a legacy

Leaving a ____ means owners can leave an ongoing business for future generations.

legacy

When there is one or more general partners and one or more limited partners, the firm is a(n):

limited partnership

The limited partners' risk of losing their personal assets in an LLP is:

limited to the outcomes of their own acts and omissions

Studies have indicated that partnerships are four times more likely to succeed than:

sole proprietorships

The responsibility of the owner of a sole proprietorship for all of the debts of the business is ____ liability.

unlimited

When any debts or damages incurred by the business are your debts or damages it is called ____ liability.

unlimited

If you are your own boss, you are responsible for paying your own wages/salary and for your own __1__ __2__ .

1. fringe 2. benefits

Selling shares of stock to anyone allows a _________ to raise more money to grow.

corporation

Taryn and Eilysh have decided to form a partnership. Taryn will not have management responsibility, but will invest money in the business. Taryn will be considered a(n) partner.

limited

The responsibility for a loss only up to the amount invested is ____ liability.

limited

The form of partnership that limits liability to the limited partner's own acts or those of the people they supervise is a:

limited liability partnership

When the continued operation of the business is dependent on the life of the business owner, it is referred to as:

limited life span

The various responsibilities of each partner, especially any issues involving ____ , should be agreed to in discussions and put in writing before agreeing to a partnership.

money

One of the most important advantages of the sole proprietor form of ownership is that a business owner:

finds it easier to start and end the business

Mark, Cal and Aidan have decided to form a business where all owners will share in operating the business and in assuming liability for the business debts. They are most likely forming a(n) _____ partnership.

general

One advantage of a partnership is that:

it is easier to raise money

An advantage of the corporate form of business is that limited liability allows it to:

limit individual responsibility for losses

Stockholders' liability for losses only up to the amount they invest is called

limited liability

A legal form of business with two or more owners is a(n):

partnership

In a sole proprietorship, any debts or damages incurred by the business are your personal debts and you must pay them. This disadvantage is known as:

unlimited liability

If your company's debts or damages are solely your responsibility you could be experiencing the disadvantage associated with owning a sole proprietorship called

unlimited liability.


Ensembles d'études connexes

Ch 15: The system of Internal Membranes (Secretion)

View Set

Day 2 Vocabulary: browser, bookmarks, & folder structure

View Set

Kidneys and Urinary System Review (powerpoints)

View Set

HDFS 2200 Complete Study Guide--Chapters 1 through 12

View Set

Psyc 523 - Chapter 3: Skills Approach

View Set

Chapter 26: Nursing Management: Upper Respiratory Problems

View Set

NBSN 8004 - Biostatistics: Module 4 (RR/OR; Sensitivity, Specificity; Survival Analysis)

View Set