93%(30)28 out of 30 people found this document helpful
This preview shows page 1 - 4 out of 48 pages.
Chapter 14 Choice of Business Entity, Sole Proprietorships, and Partnerships1. Business entities are sometimes referred to as business _______. ________________________________________2. The duty of a partner to act in the best interests of the partnership is called a ________ duty. ________________________________________3. Tabletop, LP, is registered in Nebraska but operates the business in the state of Iowa. Nebraska will require that an in-state address and a ________ be identified to receive mail and accept legal documents. ________________________________________4. Federal laws regulating the selling of equity in limited partnerships through broker-dealer contracts are known as ________ laws. ________________________________________5. Limited partnerships are required to file a(an) ________ return with the IRS each year. ________________________________________6. Under the Revised Uniform Partnership Act, the act of leaving a partnership and ceasing to be a principal is called _______. ________________________________________7. Under the Revised Uniform Limited Partnership Act, the act of leaving a limited partnership and ceasing to be a principal is called _______. ________________________________________
8. Business owners are also known as _______. ________________________________________9. A business existing in or by right of law is considered a ________ entity. ________________________________________10. A _____________ is a business entity that has a proven track record of success and sells the right to operate the business and use the business's trade secrets, trademarks, products, and so on. ________________________________________11. General partnerships are not created by filing a form with a government agency. 12. A general partner who rightfully dissociates from a partnership remains liable for predissociation debts of the partnership. 13. Capitalizationrefers to how the business will fund its operations. 14. One disadvantage of a sole proprietorship business entity is that it is restricted to theprincipal and the principal's immediate family in terms of number of employees who maywork for the business. True False15. In all forms of business entities, the entity itself pays taxes on money earned by or through the entity.
16. If two people identify themselves as general partners and create a written partnership agreement, the law is obligated to recognize their business entity as a general partnership. 17. General partnerships are pass-through entities regarding taxation; however, limited partnerships are not pass-through entities for taxes. 18. The Revised Uniform Partnership Act was enacted by Congress to make partnership law more consistent and standardized throughout the United States. True False