Question 1111 pts

Unlimited liability with respect to business ownership means ________.

to have an obligation to pay all business debt

to have an obligation to pay only the money you invest in a business

to be liable for expenses incurred only by you, not your employees

to be liable for estimated business expenses only

to have an obligation to perform all the roles in the company

Question 1121 pts

All of the following EXCEPT ________ would be an advantage to partnership.

pooled skills

increased financial resources

increased available time

unlimited liability

no separate tax return required

Question 1131 pts

Which of the following parts of a partnership agreement spells out the policy regarding partners entering into key financial or contractual agreements?

addition of partners

departure of partners

responsibilities of partners

decision-making process

capital contributions

Question 1141 pts

The most significant difference between a partnership and a sole proprietor is the ________.

amount of liability of owners

taxation process used by owners

number of government forms required for establishment

number of people contributing resources

revenue potential

Question 1151 pts

Which of the following tasks is NOT the responsibility of the board of directors?

setting policies for the corporation

authorizing the issuance of stock

electing corporate officers

managing the company's daily operations

approving loans to and from the corporation

Question 1161 pts

Which of the following types of ownership is limited to 100 owners?

C corporation

S corporation

sole proprietor

limited liability company

general partnership

Question 1171 pts

The owners of a corporation are known as general corporate partners.

True

False

Question 1181 pts

Which of the following statements BEST describes the distinction between a not-for-profit corporation and a for-profit corporation?

Not-for-profits do not pay their employees.

Not-for-profits cannot be organized for any person's private gain.

Not-for-profits have to dissolve when the owner leaves or dies.

Not-for-profits cannot hire executive officers to run the business.

Not-for-profits do not need to keep complete books and records.

Question 1191 pts

Not-for-profit organizations may NOT earn a profit.

True

False

Question 1201 pts

In a partnership, all profits and losses flow through each partner's ________.

tax returns

savings

liabilities

investments

mortgages