WEEK 8 QUIZ 1

August 10, 2021/in Uncategorized /by Davis

QUESTION 1

If partners wish to maintain having protection against personal liability, it is essential to comply with all the technicalities of a limited liability partnership statute.

True

False

3.5 points

QUESTION 2

Which is an advantage of a sole proprietorship?

a.
It is very easy to form.

b.
It offers its owner limited liability.

c.
It can attract a wide variety of shareholders.

d.
It can offer multiple classes of stock.

3.5 points

QUESTION 3

Which of the following statements regarding social enterprises is TRUE?

	a.	The focus of social enterprises is the motto “reduce, reuse, recycle.”
	b.	To become a socially conscious organization, one-half of the shareholders must approve.
	c.	Social enterprises are essentially nonprofit organizations.
	d.	A social enterprise must agree to measure its social benefit using objective third party standards.

3.5 points

QUESTION 4

Which is true of an S corporation?

	a.	There can be no more than 50 shareholders.
	b.	There can be only one class of stock.
	c.	A majority of shareholders must agree the company should be an S corporation.
	d.	All of these are correct.

3.5 points

QUESTION 5

Most franchisors and franchisees are

a.
partnerships.

b.
social enterprises.

c.
corporations or LLCs.

d.
sole proprietorships.

3.5 points

QUESTION 6

The form of business ownership that is the MOST easily transferable is the

a.
close corporation.

b.
sole proprietorship.

c.
corporation.

d.
general partnership.

3.5 points

QUESTION 7

The phrase “piercing the company veil” applies to which type of organization?

a.
a close corporation

b.
a limited liability company

c.
an S corporation

d.
a general partnership

3.5 points

QUESTION 8

In many ways, a limited liability company can be thought of as a cross between

a.
a corporation and a franchise.

b.
a joint venture and a partnership.

c.
a sole proprietorship and a social enterprise.

d.
a corporation and a sole proprietorship.

3.5 points

QUESTION 9

To be a close corporation, the business must be small, with no more than 20 owners, trade its stock publicly, and have no more than $500,000 in gross annual income.

True

False

3.5 points

QUESTION 10

All the business forms listed below have limited liability EXCEPT the

a.
limited liability company.

b.
“S” corporation.

c.
corporation.

d.
general partnership.

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