Ch19-TB-BLTE-8e

Ch19-TB-BLTE-8e - Chapter19 TRUE/FALSEQUESTIONS 1 , ANSWER...

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Chapter 19 The Entrepreneur’s Options TRUE/FALSE QUESTIONS 1. In a sole proprietorship, the owner takes all of the profits. ANSWER: T PAGE: 586 TYPE: N MISC: AACSB Reflective Skill Level: AICPA Critical  Thinking 2. In a sole proprietorship, the owner receives all of the risk. ANSWER: T PAGE: 586 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 3. A sole proprietorship’s income is taxed as the firm’s profits,   not   as the  owner’s personal income. ANSWER: F PAGE: 586 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 4. Unless the partnership agreement states otherwise, general partners share  profits in the same ratio as capital contributions. 33
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34 TEST BANK TO ACCOMPANY BUSINESS LAW TODAY: THE ESSENTIALS ANSWER: F PAGE: 587 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 5. Unless the partnership agreement states otherwise, a general partner’s  vote   in   management   matters   is   proportionate   to   his   or   her   capital  contribution. ANSWER: F PAGE: 587 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal
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CHAPTER 19: THE ENTREPRENEUR’S OPTIONS 35 6. In most states, a sole proprietorship must file a certificate of proprietorship. ANSWER: F PAGE: 587 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 7. A limited partnership must include at least one limited partner. ANSWER: T PAGE: 588 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 8. A limited partnership can include only a limited number of partners. ANSWER: F PAGE: 588 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 9. Most states require a limited partnership to file a certificate of limited  partnership with the appropriate state office. ANSWER: T PAGE: 588 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 10. In a limited partnership, the liability of a  general  partner is limited to the  amount of capital he or she has invested in the partnership. ANSWER: F PAGE: 588 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 11. In a limited partnership, the liability of a  limited  partner is limited to the  amount of capital he or she invests in the partnership. ANSWER: T PAGE: 588 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 12. A   general   partner   cannot   participate   in   the   management   of   a   limited  partnership.
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TEST BANK TO ACCOMPANY BUSINESS LAW TODAY: THE ESSENTIALS ANSWER: F PAGE: 588 TYPE: N MISC: AACSB Analytic Skill Level: AICPA Legal 13. Forming a limited liability company (LLC) requires filing articles of organi- zation in a federal LLC office.
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This note was uploaded on 11/03/2009 for the course ARE 18 taught by Professor Maxey during the Spring '08 term at UC Davis.

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Ch19-TB-BLTE-8e - Chapter19 TRUE/FALSEQUESTIONS 1 , ANSWER...

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