1. Choice of ownership determines the degree to which each owner has personal liability for the firm's debts and the sources of funds available to the firm to finance future expansion.
2. A.True
3. B.False

1. James is the sole proprietor of an automobile store. He wishes to pass on his assets to his children after his death. In order to attain the best tax advantage, what will his lawyer most likely advise him to do?
2. A.Sell the automobile store and pass the money on as cash so that he will only lose about 60 percent of it in estate taxes.
3. B.Sell the automobile store to the government in order to get twice the market value for it and then pass on the windfall.
4. C.Convert the sole proprietorship to a limited liability company and list it in his will as handed down to his heirs.D.List the sole proprietorship in his will as passing to his heirs.

1. Successful businesses embrace change and carefully evaluate risks.
2. A.True
3. B.False

1. Fiscal policy is the government's effort to influence the economy through taxation and spending decisions to encourage growth and boost employment while curbing inflation.
2. A.True
3. B.False
4. The board of directors usually appoints the_____ to manage the company on a daily basis.
5. A.chief executive officer
6. B.common stockholders
7. C.preferred stockholders
8. D.angel investor

1. Stockholders are the _____ of a corporation.
2. A.creditors
3. B.employees
4. C.marketers
5. D.owners

1. _____ is an entrepreneurial "must."
2. A.Freedom from taxation
3. B.Protection from competition
4. C.Freedom from regulation
5. D.Protection from corruption
6. The _____ summarizes a firm's financial position at a specific point in time by listing its assets, liabilities, and owners' equity.
7. A.statement of cash flows
8. B.income statement
9. C.balance sheet
10. D.budgeted balance statement
11. The vast majority of limited liability companies (LLCs)elect to be taxed as _____.
12. A.C corporations
13. B.sole proprietorships
14. C.partnerships
15. D.S corporations

1. A(n) _____ should be used to deliver an important message to many people at the same time and experience the immediate response of the receivers of the message.
2. A.voice mail
3. B.mass email
4. C.in-person presentation
5. D.instant message

1. Over 50% of entrepreneurs finance their new businesses with loans provided by commercial lending institutions.
2. A.True
3. B.False