stud
bud
Sign up
Log in
Home
Library
Explore
SAT
More
Week 2-1 Forms of BUsiness Flashcards | StudBud
Explore
/
Week 2-1 Forms of BUsiness
Week 2-1 Forms of BUsiness
15 terms
·
StudBud Administration
·
212 plays
Imported from external platform
Flashcards
15 cards
F
Practice quiz
P
Host live
L
Questions
15
Answers
1
A sole proprietorship is a form of business ownership in which:
two or more people act as co-owners of the company.
Owners of the bus are offered limited liability and flexible tax treatment
a single owner actively manages the company.
the company is considered a legal entity that is separate from its owners
2
A limited liability company (LLC) can elect to be taxed as a corporation.
True
False
3
Which of the following statements is true of a limited liability company (LLC)?
It offers less flexibility than a corporation in terms of tax treatment
It is required to hold regular board meetings.
It is by far the most common type of business organization in the USA
It is a relatively new form of business ownership in the United States.
4
_____ is a form of business ownership offers both restricted responsibility to its owners & flexible tax treatment
quasi corporation
S corporation
sole proprietorship
limited liability company
5
A firm considers _____ to increase size and market power within the industry.
vertical mergers
a conglomerate consolidation
a buyer-supplier consolidation
horizontal mergers
6
Corporation is a business entity created by filing a form which is known in most states as the articles of incorporation
True
False
7
In a sole proprietorship, any debts the company incurs are:
taxed only if the owner has not taken a loan.
treated as the owner's personal income.
considered to be the owner's personal liabilities.
used to purchase preferred stocks of the company.
8
A corporation can be a partner in a partnership.
False
True
9
A corporation offers more flexibility than a limited liability company (LLC) in terms of tax treatment.
True
False
10
A corporation is a voluntary agreement under which two people act as co-owners of a business for profit.
True
False
11
A(n) _____ is a voluntary agreement under which two or more people act as co-owners of a business for profit.
partnership
vertical merger
S corporation
acquisition
12
A corporation is a separate entity from its owners where the:
owners are not personally responsible for the obligations of the company.
articles of incorporation are not required to set up the company.
company cannot enter into binding contracts in its name.
death or withdrawal of an owner dissolves the company.
13
A disadvantage of an S corporation is that it can have no more than 50 stockholders.
False
True
14
A _____ is a form of business ownership in which the business is considered a legal entity that is separate & distinct
sole proprietorship
cooperative
partnership
corporation
15
Ronnie is the owner of a pet store and manages the store by himself. Any profit that Ronnie's store earns is:
taxed only if Ronnie has taken a loan.
used to purchase preferred stocks of the store.
not subjected to any form of taxation.
treated as Ronnie's personal income.
