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Which form of business is the easiest to set up?
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Which forms of business organization does not involve unlimited personal liability for its owners?
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business law #5
| Question | Answer |
|---|---|
| Which form of business is the easiest to set up? | sole proprietorship |
| Which forms of business organization does not involve unlimited personal liability for its owners? | corporation ( |
| A partnership agreement can be structured so as to continue the partnership business even if the partnershi is dissolved. | true |
| Which of the following is known to the public but does not participate in management? | silent partner |
| If a partner dies the partnership is dissolved. | true |
| If a partnership is formed for a period of 5 years, it cannot be terminated before the end of the 5 years. | false |
| A partner who invests more time or money in the partnership has a right to a larger percentage of the profits? | false |
| Which of the following is active in management of a partnership but unknown to the public? | secret partner |
| Which form of business has the greatest potential to bring together large sums of capital? | corporation |
| Which form of business organization needs a charter from the state? | corporation |
| Which form of business has the greatest potential for attracting professional managers? | corporation |
| Which of the following does not participate in management and is only potentially liable for her/his investment in the partnership? | limited partner |
| A partner may engage in other businesses, even if they compete with the partnership? | false |
| special partnership | Partnership organized for a single transaction. |
| non-trading partnership | Partnership that provides professional and noncommercial assistance or advice. |
| limited parternship | Partner with limited liability. |
| partnership | Association of two or more to do business as co-owners for profit. |
| silent partner | Partner who is publicly known but not actively managing. |
| dormant partner | Partnership who is not publicly known and not actively managing. |
| corporation | Artificial person created as a legal entity by the authority of federal or state law. |
| secret partner | Partner who is not publicly known but is actively managing. |
| sole proprietorship | Simplest form of business organization. |
| termination | Conclusion of a partnership's legal existence. |
| Which form of business organization is looked upon as being an artificial entity, separate from its owners? | corporation |
| Every general partner has an equal right to participate in management of the firm? | true |
| The UPA governs | partnership |
| Which form of business organization does not terminate upon the death of its owners? | corporation |
| All a corporation's shareholders must assent before the subchapter S status can be assumed. | true |
| All corporations are subject to double taxation. | false |
| There have to be at least two general partners in a limited partnership | false |
| Which rule protects corporate officers from being held personally liable to parties outside the corporation for honest errors of judgment made in carrying out the corporate business? | business judgment rule |
| dividends | Distributions of corporate earnings |
| shares of stock | Units of ownership in a corporation |
| proxy | Power to vote shares for shareholders |
| articles of incorporation | Application to a state for a corporate charter |
| consolidation | Combination of two companies into one new one |
| bylaws | Rules for the internal organization and management of a corporation |
| preferred stock | Non-voting stock conveying the right to receive a stipulated dividend before any common shareholders receive their dividends |
| common stock | Basic stock in a corporation conveying the right to vote and to receive dividends to its owner |
| incorporators | Signers of the articles of incorporation |
| directors | Individuals elected by the share holders to be responsible for the overall direction of the corporation |
| In the event of problems, individual stockholders in a corporation generally stand to lose only what they have invested in the corporation? | true |
| Which of the following is not required to be in the articles of incorporations? | all information listed is required |
| A rule adopted by a corporation's board of directors that calls for a stockholder meeting every six months is termed? | bylaw |
| Which of the following records do not have to be kept in the limited partnership's designated office within the certifying state? | tax records for the last 5 years |
| Corporations are the most numerous form of business in the United States. | false |
| What is the maximum number of stockholders in subchapter S corporation? | 75 |
| articles of organization | Document filed with the state to organize an LLC |
| double taxation | Taxation of a corporation as an entity based on its earnings and then of the shareholders on corporate dividends |
| LLP | Form of business organization that offers limited liability only to tortious conduct |
| limited liability corporation | Form of business organization that avoids double taxation, affords partial limited liability protection, and is easily convertible from the partnership form |
| members | Owners of an LLC |
| S corporation | Form of business organization in which earnings are treated the same as a gain from a partnership and only taxed at the individual owner's level |
| All common stockholders must vote their share in every corporate election. | false |
| An LLC can have no more than 75 members | false |
| A subchapter S corporation can include as stockholder a venture capitalist living in Japan. | false |
| LLCs are still subject to double taxation. | false |
| Shareholders will always be paid dividends as long the corporation makes a profit. | false |
| Which of the following will NOT result in a corporate dissolution? | firing of CEO |
| Only a state can authorize the creation of a corporation? | true |
| No-par stock is originally sold at a price set by the market? | false |
| Which of the following could not be an LLC member? | all listed can be members |
| Safety in the workplace is the area of responsibility of the | OSHA |
| The first federal agency was created in response to the Great Depression of the 1930's. | false |
| Which agency is the oldest? | ICC |
| Which of the following is NOT a focus of review of agency decisions by the federal appellate courts? | does a state agency have the same job? |
| The government regulates the New York and American Stock Exchanges | true |
| Which of the following is looked upon as being necessary for due process? | all of the answers listed are correct |
| The consolidation of legislative, executive and judicial powers in an agency violates the principle of separation of powers. | true |
| Which of the following is not a statute enacted to create public accountability for agency activities? | Interstate Commerce Act |
| NLRB | regulates collective bargaining |
| Federal Register | government publication containing agency regulations |
| FDA | regulates safety of drugs |
| CPSC | regulates toy safety |
| Federal Reserve System's Board of Governors (FED) | regulates interest rates |
| FTC | regulates unfair trade practices |
| SEC | regulates the national stock exchanges |
| FCC | regulates television broadcasting |
| due process | notice of charges or potential rulemaking coupled with opportunity to appear, present evidence, and confront witnesses if warranted |
| intrastate commerce | commerce conducted wholly within one state |
| EPA | regulates the disposal of toxic waste |
| There are no limitations on agency powers. | false |
Created by:
stephparnell