Chapter19_Answers - Chapter 19 Assessment Answers Matching...

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Chapter 19 Assessment Answers Matching Key Terms 1. g 4. i 7. j 10. f 2. d 5. e 8. c 3. b 6. a 9. h True/False Quiz 11. F 14. T 17. T 20. F 23. F 12. T 15. F 18. T 21. T 24. T 13. T 16. F 19. T 22. T 25. F Discussion Questions 26. Businesses are generally organized as one of the following forms: (1) sole proprietorship, (2) partnership, (3) corporation, or (4) limited liability company. 27. Advantages to organizing as a sole proprietorship include: (a) ease of formation; (b) the owner has complete authority for the running of the business; (c) all profits generated flow directly to the owner; and (d) the business is easy to dissolve. Disadvantages of organizing as a sole proprietorship include: (a) the owner has unlimited liability; and (b) the difficulty the owner faces in raising money to finance the operations of the business. 28. Advantages to organizing as a partnership include: (a) each partner has the right to share in the profits of the business; and (b) each partner has a right to share in the value of the firm’s assets. Disadvantages of organizing as a partnership include: (a) each partner has unlimited liability for all legal obligations and debts of the business; and (b) partners have joint and several liability. 29.
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This note was uploaded on 04/23/2010 for the course FINA 8645 taught by Professor Smith during the Spring '10 term at Rensselaer Polytechnic Institute.

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Chapter19_Answers - Chapter 19 Assessment Answers Matching...

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