QUESTION 23

1.Article 9 of the UCC does not cover a security interest in the following:

Land.

Inventory.

Equipment.

Patents and copyrights.

QUESTION 24

1.Bankruptcy proceedings are commenced under:

State law.

Federal law.

Local (city or county) law.

State or federal law at the option of the debtor.

QUESTION 25

1.Sole proprietorships are the most common form of business organization in the United States.

True

False

QUESTION 26

1.The right to participate in the management of the business is evidence of a partnership.

True

False

QUESTION 27

1.In an LLC, all owners have limited liability.

True

False

QUESTION 28

1.The major disadvantage of a sole proprietorship is:

The difficulty and cost of formation.

The unlimited liability for the business's debts.

The sharing of management authority with others.

The difficulty in transferring ownership to others.

QUESTION 29

1.Which of the following best describes the requirements of a partnership?

An association of persons, owning property, sharing gross receipts

An association of persons, owning a business in order to make a profit

An association of persons, owning property in order to make a profit

An association of persons

QUESTION 30

1.Which types of partners in a limited partnership should participate in management?

General partners only.

Limited partners only.

Both general and limited partners.

General partners only, unless there are no general partners, and in that case, limited partners participate in management.