1. Because it consists of only one individual operating a business, a sole proprietorship is not a true business entity.

a. True

b. False

2. Select the entity that has the most centralized form of management:

a. Corporation

b. Subchapter S corporation

c. Sole proprietorship

d. LLC

3. What type of liability do partners in a general partnership have?

a. joint and several

b. full personal liability

c. liability for contracts and torts

d. All of these

4. In a general partnership, when a partner transfers his interest to a third party, the third party becomes a partner.

a. True

b. False

5. Under a tenancy in partnership

a. When a partner dies, title to the partnership property vests in the remaining partners

b. The tenancy in partnership ends.

c. When a partner dies, the property is split equally among the partner's estate and the remaining partners

d. When a partner dies, the partnership is dissolved and the partner's estate and the remaining partners each get their share of all the liquidated assets