Chapter 4 Assignment Sevi

Which of the following is correct regarding taxation of a general partnership and its general partners?

Each partner's share of the partnership profit is taxed in the same way a sole proprietor is taxed.

Prisha, a majority shareholder in Southwestern Home Furnishings, Inc., would like to convert the company to an S corporation. To do so, she must meet all of which of the following requirements

- All stockholders must agree to the decision to form the S corporation. - The corporation must not have nonresident, alien shareholders. - the corporation must have no more than 100 stockholders.

Which of the following is an example of a corporation's "growth from within?"

- Expanding the sale of present products to new geographic market - expanding present operations - introducing new but related products

Noah and Ramia are forming a general partnership for their accounting business, and they are drafting a partnership agreement. Which of the following should they include in the partnership agreement?

- What each partner's duties will be - What the nature of the partnership is - What happens if a partner wants to dissolve the partnership

Suppose you and your friend are both passionate about screen printing. You would like to start up a screen-printing business, form a general partnership for the business, and invite your friend to join you as a general partner. Which of the following is not a recognized advantage of general partnerships you can share with your friend to encourage them to join the business as a general partner?

- limited liability what is availability of credit ease of start up retention of profits

If Microsoft Corporation, an American multinational technology company which produces computer software, consumer electronics, personal computers, and related services, were to combine with Exxon Mobil Corporation, an American multinational oil and gas company, this would be known as which of the following?

A conglomerate merger

Which of the following is correct regarding government regulation and paperwork requirements associated with the corporate form of business ownership?

A corporation that sells its stock to the public must make periodic reports to its stockholders.

you would like to advise your friend Anish, a budding entrepreneur who is considering establishing a sole proprietorship, of the tax implications of owning this form of business ownership. Which of the following is correct regarding the tax implications of owning a sole proprietorship

A sole proprietor must report business profit to the Internal Revenue Service.

Which of the following is correct regarding mergers and acquisitions?

An acquisition is essentially the same thing as a merger.

Which of the following is correct regarding a syndicate?

It is most commonly used to underwrite large insurance policies, loans, and investments.

Which of the following is correct regarding a corporation's board of directors?

Its members are elected by the stockholders.

Which of the following is correct regarding a limited liability company?

Like a corporation, a limited liability company (LLC) provides limited liability protection for acts and debts of the LLC

Clara and Amelia are considering forming a general partnership for their restaurant business. Before they decide to do so, they would like to consider the disadvantages to choosing this form of business ownership. Which of the following is not a recognized disadvantage to forming a general partnership?

Personal Interest what is lack of continuity unlimited liability frozen investments

Your friend, Aurora, is going to open her own "zip line" business soon, and you would like to encourage her to open a sole proprietorship. You plan to share with her the advantages of opening this form of business ownership. Which of the following is an advantage of owning and operating a sole proprietorship?

Retention of all profits

Karolina and Ida are forming a general partnership for their automobile repair business, and they are drafting a partnership agreement. Which of the following should they include in the partnership agreement?

The investment each partner will make

amille, an attorney, has been offered a general partnership in the law firm where she works. She is considering whether to accept the position. Which of the following is correct regarding general partners?

They assume unlimited liability for all business debts, including business debts incurred by any other general partner without their knowledge or consent

Manuel, a financial entrepreneur, has been offered a limited partnership in a natural gas drilling partnership. He is considering whether to pursue this opportunity. Which of the following is correct regarding limited partners?

They receive a portion of partnership profits and tax benefits.

Pacific Northwest Baking Company, located in Sumner, Washington, produces over one million buns daily for nearly 600 McDonald's locations in several Western states, including Washington, Oregon, Idaho, Montana, and California. If McDonald's were to purchase Pacific Northwest Baking Company to gain even greater control over its bread supply in that region of the United States, and the management and board of directors of Pacific Northwest Baking Company were to approve of the purchase, this would be known as which of the following?

Vertical merger

ames, Patrick, and Willow would like to form a corporation for their computer sales and repair business. They would like to split ownership of the stock shares of the company equally and would not like to issue stock for sale to the public. Based on this information, James, Patrick, and Willow would like to form which of the following types of corporations?

a closed corporation

Lowe's Companies, Inc. is a business supply and home improvement retailer incorporated in Mooresville, North Carolina. If Lowe's Companies, Inc. opens a store in any state in the United States other than North Carolina, it will be considered which of the following in that state?

a foreign corporation

Matias and Alessia would like to form a business entity for the specific purpose of making travel arrangements for customers who would like to attend the next Winter Olympic Games. Once the next Winter Olympic Games are over, Matias and Alessia plan to dissolve their business relationship and "go their separate ways." Which form of business ownership is most appropriate for Matias and Alessia?

a joint venture

Having recently graduated with a divinity degree, Rowena would like to start up her own church. Which of the following forms of business ownership should she choose?

a not for profit corporation

Pranav and Lian are considering forming a corporation to operate their pool installation and repair business. Deion, their friend, supports this idea and plans to inform them of the advantages of choosing the corporate form of business ownership. Which of the following is not an advantage of forming a corporation?

ease of formation what is perpetual life ease of raising capital ease of transfer of ownership

If American Airlines and Delta Air Lines were to combine to form a new company, DeltAmerican Air, this would be known as which of the following?

horizontal merger

Your friend, Hakim, is going to open his own bakery soon, and you would like to encourage him to open a sole proprietorship. You plan to share with him the advantages of opening this form of business ownership. Which of the following is not a recognized advantage of owning and operating a sole proprietorship?

limited liability what is ease of start up retention of all profits pride of ownership