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Chapter10 BusinessOrganizations TRUE/FALSEQUESTIONS 1. Inasoleproprietorship,theownerreceivesalloftherisk. ANSWER: T PAGE: 277 TYPE: N Objective:AACSBAnalytic SkillLevel:AICPALegal 2. Asoleproprietorshipsincomeistaxedonlyonce. ANSWER: T PAGE: 277 TYPE: N Objective:AACSBAnalytic SkillLevel:AICPALegal 3. Asoleproprietorshipsincomeistaxedasthefirmsprofits, not asthe ownerspersonalincome. ANSWER: F PAGE: 277 TYPE: N Objective:AACSBAnalytic SkillLevel:AICPALegal 4. Apartnershipisneverconsideredalegalentityapartfromitsowners. ANSWER: F PAGE: 277 TYPE: N Objective:AACSBAnalytic SkillLevel:AICPALegal 5. Theincomefromapartnershipistaxedinthesamemannerastheincome fromasoleproprietorship. ANSWER: F PAGE: 277 TYPE: N Objective:AACSBAnalytic SkillLevel:AICPALegal 155 156 UNIT THREE: THE COMMERCIAL ENVIRONMENT 6. A generalpartnerispersonallyliableforpartnershipdebtsifthefirm cannotpayitscreditors. ANSWER: T PAGE: 277 TYPE: N Objective:AACSBAnalytic SkillLevel:AICPALegal 7. Theformationofalimitedpartnershiprequiresthatacertificateofpart- nershipbefiledinthestateofformation. ANSWER: T PAGE: 278 TYPE: N Objective:AACSBAnalytic SkillLevel:AICPALegal 8. Inalimitedpartnership,theliabilityofa general partnerislimitedtothe amountofcapitalheorshehasinvestedinthepartnership. ANSWER: F PAGE: 278 TYPE: N Objective:AACSBAnalytic SkillLevel:AICPALegal 9. Alimitedliabilitycompanyisoperatedincompliancewithstatelaw. ANSWER: T PAGE: 279 TYPE: N Objective:AACSBAnalytic SkillLevel:AICPALegal 10. Forfederaljurisdictionalpurposes,alimitedliabilitycompanyistreated likeacorporation.... View Full Document

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