Course Hero Logo

Search

G

F $57$ in choosing a form of business organization for

View full document

DOC PREVIEW

page

$2$

of $3$

$55.$The extentofimplied authorityisgenerally broader for agentsthanforpartners. a$.$Tb$.$F $56.$Inchoosing afonnofbusiness organizationforanewenterptise, important factors include theambianceofthehomeoffice. a$.$Tb$.$

F $57.$Inchoosing a formofbusiness organizationfora new enterprise, important factors include the titlesoftheorganization's officers. a$.$Tb$.$F $58.$Inchoosing a formofbusiness organization for anewenterprise, important factors include the easeofcreation. a$.$ Tb$.$F $59.$Starting a sole proprietorshipiseasier and less costlythanstartinganyotherfonnof business. a$.$Tb$.$F $60.$A sole proptietorship's incomeistaxedas theowner'spersonal income. a$.$Tb$.$F $61.$A sole proprietormayownandmanage anytypeofbusiness. a$.$Tb$.$F $62.$Oneofthedisadvantagesofa sole proprietorship is thattheownerisliableforthe losses ofthe business. a$.$Tb$.$F $63.$A sole proprietorship continues in business despite thedeathoftheowner. $64.$Oneoftheadvantagesofa sole proprietorshipisthattheownerisnotliablefortheactions ofthe business. $65.$A sole proprietorship is a separate legal entity fortaxpurposes. $66.$Cal sells"DownSize,"a weight$-$reduction program, from aWebsite, in competition with Eat$-$Less Inc.'sproduct"Fit'nTtim." Eat$-$Less files a suit against Cal, alleging in part that heisa sole proprietor,buthis enterprise shouldbedeemedadifferentfonnofbusiness. Cal'senterprise should most likely be considered a$.$a corporation becauseDownSizeissold online. b$.$a franchisee becauseDownSizeissold in competitiontoFit'nTrim. c$.$a sole proprietorship because Calisa sole proprietor. d$.$noformofbusiness entity because Cal has no formal organizatio $67.$Leighwantstogo into the businessofconstruction contracting.Amongthereasons that wouldprobably convince Leightoset up his business as a sole proprietorshipwouldbe a$.$its greater organizational flexibility. Examiner: DelickOhemeng$-$MensahPage$9$of $19$

b$.$its limited liability. c$.$its perpetual existence. d$.$the easeoftransferring the business to other family members.

$68.$Kelly, theownerofLlan$1$a Farms, a sole proprietorship,wantsto obtain additional business capital buttomaintain control. This can best be accomplished by a$.$borrowing funds. b$.$bringing in partners. c$.$issuing stock. d$.$selling the business. $69.$Fred starts up$,$ and assumes the financial risk of$,$ GraphicAds,anewmarketing enterprise. Fredis a$.$a franchisee. b$.$a franchisor. c$.$an agent. d$.$a sole proprietor. $70.$Carl sells Direct Marketing Enterprises, a sole proprietorship, to Erv. This is a transferof a$.$a license. b$.$a trade name. c$.$the formula to make a prod uct. d$.$the ownershipofthe business. $71.$Jody owns KuppaJava Kiosks, a sole proprietorship.Jody'sliabilityis a$.$limitedbystate statute and varies from state to state. b$.$limited to the extentofcapital expenditures. c$.$limited to the extentofhisorher original investment. d$.$unlimited. $72.$Jim organized, andownsand operates, Jim's Landscaping Service in the simplest formof business organization. Thisis a$.$a corporation. b$.$a lilnited liability company. c$.$a partnership. d$.$a sole proprietorship. $73.$Where an increaseinnumberofdirectors involves an alterationofthe Constitution,a$/$an $\_\_\_\_\_\_$would be necessary for the purpose. $($a$)$ Special Resolution $($b$)$ Ord inary Resolution $($c$)$ Written Resolution $($d$)$Votingby Proxy $74.$The directorsofa company are usually $($appointed$)$ elected by shareholders at general meeting by anpassed bymajorityofvotes. $($a$)$ Ordinary Resolution $/$ Simple $($b$)$ Special Resolution! Simple $($c$)$ Written Resolution $($d$)$ Ordinary Resolution $/$Special