The terms capital, net worth, and equity are

interchangeable and defined as assets less liabilities

Which of the following characteristics does not generally apply to entrepreneurs?

they start businesses in fields they are experienced in

One feature of a sole proprietorship is

business activities can start and end w/out legal formality

Which of the following is not one of the common responsibilities of supervisors?

keep employee complaints from management to prevent problems

The type of business that can be operated suitably as a proprietorship is one that

can be managed by the proprietor or their employee

In a sole proprietorship

creditors have first claim against assets

a federal income tax return is filed

Which of the following is true about entrepreneurs?

they usually work hard and for long hours

The trade name of a proprietorship

does not reduce the owners liability to creditors

In a limited partnership

at least one partner must have unlimited liability

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Business Fundamentals CPAS 2 Mrs. Ables

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Questions 25

Answers

1
The most common form of business organization is the
corporation
proprietorship
cooperative
partnership
2
The terms capital, net worth, and equity are
interchangeable and defined as assets plus capital
interchangeable and defined as assets less liabilities
interchangeable and are defined as assets less capital
not interchangeable and defined as assets less capital
3
Which of the following characteristics does not generally apply to entrepreneurs?
they start businesses in fields they are experienced in
they rarely launch a new business after an bad start up
they are less interested in profit than in challenges
they prefer consensus decision-making
4
One feature of a sole proprietorship is
business activity requires many legal documents
business activities can start and end w/out legal formality
there is no payroll
taxes are higher than for a corporation
5
A business that would be well suited to the partnership form of ownership is
one with multiple locations
a seasonal market
one that sells on a small scale
a personal service business
6
Analyzing information and making decisions about what to do is the management function known as
implementing
none of the responses
organizing
planning
7
Approximately how many new businesses fail within the first five to six years?
25%
50%
5%
75%
8
What is the most true statement about poverty?
People can slways climb out of poverty through hard work
Poverty is the same all over
People below the poverty level are lazy
It is a relative term
9
The business name "Carrera, Rivera & Co." indicates
at least three partners
an artificial name
two partners
a sole proprietorship
10
The function being performed when a manager is carrying out plans and helping employees work
budgeting
organizing
planning
implementing
11
The process of starting a business begins with a
lease
contract
balance sheet
business plan
12
Which of the following is not one of the common responsibilities of supervisors?
control costs and use resources efficiently
encourage employees to do their best work
communicate goals and directions to employees
keep employee complaints from management to prevent problems
13
In addition to capital, partners are often a source of
profits
red tape
debts
goodwill
14
What is the type of partnership that limites the amount of liability based on their investment
limited partnership
restricted partnership
unlimited partnership
unrestricted partnership
15
The process of accomplishing goals of an organization through people is
implementation
planning
management
supervision
16
People in the 1st level of management in a company are known as
mid-mangers
trainees
supervisors
executives
17
The type of business that can be operated suitably as a proprietorship is one that
usually does not provide personal services
can be managed by the proprietor or their employee
requires a great amount of capital
usually operate on a large scale
18
To be considered a manager, you must
regularly complete management functions
have authority over other jobs
all of the responses
have authority over other people
19
One of the main reasons many proprietorship's fail within a short time is that
the owner lacks needed skills
the owner lacks interest in the business
proprietorship's are not able to compete with partnerships
proprietorship's are not able to compete with corp. now
20
In a sole proprietorship
assets are safe from creditors
creditors have first claim against assets
employees share in the liabilities
there are no employees
21
in a partnership
partners pay no personal income tax
a federal income tax return is filed
a tax is paid on all profits
the business is taxed the same way a corporation is
22
In what kind of partnership is each partner personally liable for all the business's debts
general partnership
In what kind of partnership
restricted partnership
unrestricted partnership
23
Which of the following is true about entrepreneurs?
they prefer to assign responsibility to employees
they would rather work for others
they usually give up quickly
they usually work hard and for long hours
24
The trade name of a proprietorship
cannot be listed as Gomez & Co. in any state
does not reduce the owners liability to creditors
does not have to be registered
cannot be an artificial name
25
In a limited partnership
at least one partner must have unlimited liability
all partners must be limited partners
no partners are liable for any of the partnerships debts
all partners must be general partners

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