Chapter 3 True or False

Réussis tes devoirs et examens dès maintenant avec Quizwiz!

A buy-sell agreement states what a business can do and provides other organizational and financial information.

False

A partnership is easier to form, operate, and terminate than a proprietorship.

False

An equal partnership between owners is advisable in order to facilitate decision-making.

False

In a corporation, personal property of the owners can be taken to pay the debts of the business.

False

Once the choice of a legal form for a new business has been made, it cannot be changed until the business is dissolved or sold.

False

The owners of any corporation are usually the corporate officers.

False

Partnerships account for significant revenues in services, trade, and construction

False.

The board of directors conducts the day-to-day operations of a business.

False; company management conducts day-to-day operations

A limited partnership firm is managed by the concerned limited partners

False; it is managed by general partners

Limited-liability companies are permissible only in a few states in the United States.

False; they are permissible across the US

In a limited partnership, the general partners have limited personal liability for the debts of the business.

False; they have unlimited personal liability

A cooperative is a business owned by two or more persons who have unlimited liability for its debt and obligations.

False; this is a partnership

The cooperative form of business is usually associated with the purchasing, selling, and financing of farm equipment and materials.

True

The main disadvantage of a corporation is double taxation.

True

The traditional form of a corporation is called a C corporation.

True

Usually, income derived from a joint venture is taxed as if the organization were a partnership.

True

A buy-sell agreement details the terms by which stockholders can buy out each other's interest.

True

A corporation is considered by law to be a unique entity, separate and apart from those who own it.

True

A proprietorship legally ends with the owner's death, and some legal action must be taken to restart it.

True

An advantage of a corporation is that large amounts of capital can be raised easily.

True

Articles of incorporation are the instrument by which a corporation is formed under the corporation laws of a given state.

True

From a legal standpoint, in a proprietorship, a business and its owner are one and the same and cannot be separated.

True

In a corporation, the shareholders elect a board of directors to oversee major policies and decisions.

True

In a partnership, each partner is responsible for the acts of all the other partners.

True

In an S corporation, all shareholders involved in the firm must be individuals, estates, or some type of personal trust.

True

Partnerships are more effective than proprietorships in raising funds.

True

Proprietorship is the most popular form of business in the United States.

True

Proprietorship is the oldest and most prevalent form of ownership in the United States.

True

The Uniform Partnership Act (UPA) governs the operations of partnerships in the absence of other expressed agreements.

True

The articles of copartnership should be drawn during the preoperating period and should show the rights, duties, and responsibilities of each partner.

True


Ensembles d'études connexes

PEDS ATI A+B practice qs for exam2

View Set

NU371 HESI Case Study: Pathophysiology Practice Quiz

View Set

College Accounting: A Contemporary Approach - Ch 01 and 02 - The Language of Buisness and Analyzing Business Accounts - Quiz

View Set

Florida Real Estate: Chapter 12: Residential Mortgages

View Set

Chapter 31 Peds Final Immunizations

View Set