Accounting Final Module 2

Choose all the TRUE statements about partnerships from the list below.

-A single partner in a partnership can sign a contract that obligates ALL the partners in the partnership. -Partnerships can be set-up quickly and easily. -When partnerships hire employees, their reporting requirements increase.

Choose all of the TRUE statements about sole proprietorships that are included below:

-In the United States, sole proprietorships often have to pay either state sales taxes or state excise taxes. -If someone were in a hurry to create a new business, a sole proprietorship would be a good choice.

Which of the following business structures provide(s) for some type of limited personal liability in relation to the debts of the business? Choose all that apply, there could be more than one.

-LLC -LLP -Corporation

Match the type of business structure on the left with its unique characteristic on the right.

-Sole proprietorship Always owned by a single owner with 100% control. -Partnership Always must have two or more owners. -Corporation Subject to double taxation. -LLC Was primarily created to include the benefits of the other three types listed.

: Choose all of the following items that are well-known advantages of the Sole Proprietorships form of business ownership.

-Sole proprietorships are attractive to business owners who only want their business income taxed once. -Sole proprietorships have only minimal regulatory oversight.

Based on the Summary of Business Ownership Structures provided in the reading for this quiz, answer the following True or False questions as they relate to a Sole Proprietorship. The individual owner has sole decision authority. [ Select ] ["True", "False"] The income of the sole proprietorship is subject to double-taxation [ Select ] ["False", "True"] They are easy to set up [ Select ] ["False", "True"] They have an indefinite life, they can be immortal

-True -False -True -False

If someone were in a really big hurry to set up a new business in the United States, which of the following forms of ownership, should the new business owner NOT use?

Corporation

For which of the following forms of organization are the owners called "members"?

Limited Liability Company (LLC)

Assume you had a $10,000 ownership interest in each of the following business structures and you needed $6,000 right away to make your home mortgage payment or your home would go into foreclosure. If you could only obtain the money by selling one of the following, which one would most likely be the easiest to sell in order to obtain the necessary $6,000?

Share in a Corporation

If you were in a hurry to create a business structure, which of all the ones below would be the absolute quickest and easiest to set up with the fewest expected hassles. Choose only one.

Sole Proprietorship

If you were in a hurry to create a business structure, which of all the ones below would be the absolute quickest and easiest to set up with the fewest expected hassles. Choose only one.

Sole proprietorship

Which of the following is true for LLP's but is not ALWAYS true for LLCs.

There is always more than one owner.

One of the biggest disadvantages of the partnership form of business ownership is:

Unlimited legal liability for the liabilities of the partnership.

Choose the single best possible answer to the following: Before a business can officially operate as a corporation in the United States it MUST:

be registered in a state.

LLCs and LLPs have:

the advantage of single taxation like partnerships and have some form of limited liability like corporations.

Based on the Summary of Business Ownership Structures provided in the reading for this quiz, answer the following True or False questions as they relate to a Partnership. A single partner will always have sole decision authority for the whole partnership. [ Select ] ["False", "True"] The income of the partnership is only subject to a single level of taxation True Partnerships are easier to set up than sole proprietorships [ Select ] ["True", "False"] Partnerships can more easily transfer ownership than sole proprietorships can [ Select ] ["False", "True"]

-False -True -False -True

Based on the Summary of Business Ownership Structures provided in the reading for this quiz, answer the following True or False questions as they relate to a Partnership. A single partner will always have sole decision authority for the whole partnership. [ Select ] ["False", "True"] The income of the partnership is only subject to a single level of taxation [ Select ] ["False", "True"] Partnerships are easier to set up than sole proprietorships [ Select ] ["True", "False"] Partnerships can more easily transfer ownership than sole proprietorships can [ Select ] ["True", "False"]

-False -True -False -True

Based on the Summary of Business Ownership Structures provided in the reading for this quiz, answer the following True or False questions as they relate to a Partnership. A single partner will always have sole decision authority for the whole partnership. [ Select ] ["True", "False"] The income of the partnership is only subject to a single level of taxation [ Select ] ["False", "True"] Partnerships are easier to set up than sole proprietorships [ Select ] ["True", "False"] Partnerships can more easily transfer ownership than sole proprietorships can [ Select ] ["False", "True"]

-False -True -False -True

In regards to Sole Proprietorships, choose all the FALSE statements below.

-Sole proprietorships are taxed once at the business level and once at the owner level. -Sole proprietorships can be easily transferred via sales on open markets.

Mod 2.2: In regards to Sole Proprietorships, choose all of the TRUE statements below.

-Sole proprietorships are the most numerous ownership type in the United States. -The "sole proprietor" is the individual with the power and authority to make all key decisions affecting the business.

One of the biggest and most attractive advantages of the corporate form of business ownership is:

The ability to limit the investor's liability to their original investment amount.

Mod 2.3: Based on the Summary of Business Ownership Structures provided in the reading for this quiz, answer the following True or False questions as they relate to a Partnership. A single partner will always have sole decision authority for the whole partnership. True The income of the partnership is only subject to a single level of taxation [ Select ] ["True", "False"] Partnerships are easier to set up than sole proprietorships [ Select ] ["True", "False"] Partnerships can more easily transfer ownership than sole proprietorships can [ Select ] ["False", "True"]

-False -True -False -True

Based on the Summary of Business Ownership Structures provided in the reading for this quiz, answer the following True or False questions as they relate to a Corporation. Shares of a corporation are difficult to transfer to potential new owners. [ Select ] ["False", "True"] The income of a corporation is subject to single-taxation False Corporations are much more difficult to set up than partnerships [ Select ] ["True", "False"] Corporations have an indefinite life, they can be immortal [ Select ] ["True", "False"]

-False -False -True -True

Choose all of the following items that are well-known advantages of the Sole Proprietorships form of business ownership.

-Sole proprietorships have only minimal regulatory oversight. -Sole proprietorships are attractive to business owners who only want their business income taxed once.

Assume you were advising a group of individuals planning to build a new multi-billion dollar Internet retailer to compete with Amazon and Alibaba, two of the world's largest online retailers. Which one of the following business structures would you recommend they use to ensure they obtain sufficient access to the capital they will need to succeed? Choose only one.

Corporation

The United States Securities and Exchange Commission (SEC) has significant regulatory authority over:

Corporation

Which of the following business structures is the most likely to have an "indefinite" life? Choose only one.

Corporation

Which of the following forms of business ownership generally has the longest life expectancy?

Corporation

In the United States, which form of business ownership structure accounts for the highest percentage of all for-profit business revenues generated each year?

Corporations

If you wanted to set up a business in which you and another individual shared full responsibility individually and combined for all the liabilities of the business, which of the following ownership structures would you choose?

Partnership

Although not required by law, this learning topic emphasized the importance of having partners create and agree to:

Partnership Agreement

In general, which of the following forms of business ownership would have the most difficult time raising $1 billion in capital to be used to start-up and run a new business?

Sole proprietorship

Assume you are an owner in each of the following businesses and each one earned income before taxes of $100,000. If each of the businesses were to attribute the $100,000 to you (i.e. sole proprietorship, partnership, LLP, and LLC) or were to pay you a dividend for what would be rightfully yours, which structure(s) will result in the company's income, which generated the $100,000 to be "double-taxed"?

corporation

Choose the item below that provides two key advantages of LLC's:

limited legal liability and single taxation