QUIZ #1 IN BOM

Question 1

a form of business enterprise in which the capital is divided into small units

Accepted Answer

joint stock company

Question 2

a type of business entity owned and operated by a single person

Accepted Answer

sole proprietorship

Question 3

a financial-service firm owned by its policyholders or depositors

Accepted Answer

mutual companies

Question 4

Owners of corporations are called stockholders

Accepted Answer

True

Question 5

With specialized management, the partnership is provided with the opportunity to grow and develop more vigorously.

Accepted Answer

False

Question 6

Unlimited liability is the greatest disadvantage of the sole proprietorship.

Accepted Answer

True

Question 7

A type of organization is created for the purpose of bringing together several partners to engage in a business activity

Accepted Answer

joint venture

Question 8

The disadvanatage of joint venture is they lack the legality to enter into contracts and hold title to real property

Accepted Answer

False

Question 9

it is an enterprise chartered by law, with most of the legal rights of a person.

Accepted Answer

corporation

Question 10

General Partnership is an association of two or more persons who are actively involved n the business.

Accepted Answer

True

Question 11

Attracting and retaining the employees is a difficulty inherent to partnerships

Accepted Answer

False

Question 12

When a partner dies or withdraws from the business, the partnership is terminated.

Accepted Answer

True

Question 13

the ownership of a corporation may change as often as it could without actually dissolving it.

Accepted Answer

True

Question 14

In partnership dissolution, it may be easy to divide whatever assets are left for distribution to the partners.

Accepted Answer

False

Question 15

Cooperatives are organized for profit, but to make its members individually profitable or to save money.

Accepted Answer

False

Questions 15