Questions Chapter 5

Questions Chapter 5 - Chapter 5 Choosing a Form of Business...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
Chapter 05: Choosing a Form of Business Ownership 5-1 Chapter 5 Choosing a Form of Business Ownership CPS questions
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter 05: Choosing a Form of Business Ownership 5-2 1. Which is usually the easiest form of business to start and end? a. Sole proprietorship b. Limited partnership c. Corporation d. Cooperative
Background image of page 2
Chapter 05: Choosing a Form of Business Ownership 5-3 2. Sue Layman operates a sole proprietorship, but she is in poor health and may be unable to continue running the business. What would happen if Sue becomes incapacitated? a. Her business automatically continues under new management as a sole proprietorship. b. Her business automatically converts into a public corporation with stock sold to interested investors. c. Her business ceases to exist unless sold or taken over by Sue's heirs. d. Her business becomes the property of the most senior employee who wishes to continue operating the firm.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter 05: Choosing a Form of Business Ownership 5-4 3. Jaime is the sole proprietor of a gift shop in a small shopping center. Any profit is Jaime's business earns is______ because he is a sole proprietor. a. totally tax-free b. taxed only as Jaime’s personal income c. taxed twice, once as business income, then again as Jaime’s personal income d. taxed only if and when it is distributed to investors
Background image of page 4
Chapter 05: Choosing a Form of Business Ownership 5-5 4. The limited liability provided to limited partners means that they are not responsible for the debts of the business beyond which of the following? a. The firm's total assets b. The amount they have invested in the company c. The percentage of profits they are entitled to earn d. Their total personal assets
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chapter 05: Choosing a Form of Business Ownership 5-6 5. The most accurate statement about partnerships would be which of these? a. A partnership is simply a corporation with fewer than 100 owners b. A major advantage of a partnership is that it offers owners limited liability c. A major drawback of a partnership is that it is difficult to terminate d. Partnerships are taxed at the lowest corporate tax rate
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 22

Questions Chapter 5 - Chapter 5 Choosing a Form of Business...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online