Sole Proprietorship
General Partnerships
Limited Partnerships
Corporations
Mergers and Franchises
100
An advantage of sole proprietorships is:
What is Retention of control or ease of formation
100
The majority of businesses today are formed as
What is sole proprietorships
100
The newest form of partnership is:
The LLP or limited liability partnership.
100
Compared to a partnership, a major advantage of a corporation is:
Unlimited liability
100
When one firm buys another company, the arrangement is called:
An acquisition.
200
The primary disadvantage of sole proprietorships is:
What is unlimited liability
200
A major advantage of a partnership is:
The ability to share responsibilities and capitalize on complementary skills.
200
Compared to a limited partnership, the primary advantage of the LLP is:
There is no need to distinguish between general and limited partners.
200
A second major advantage of a corporation compared to a partnership is:
The ability to raise large amounts of funds.
200
When two corporations agree to join forces and pool their resources, the arrangement is called:
A merger.
300
The ability to raise funds is:
What is difficult
300
The primary disadvantage of a partnership is:
Unlimited liability for the debts of the partnership
300
In a limited partnership, the primary role of the general partners is:
To assume responsibility for managing the partnership.
300
A major disadvantage of a corporation compared to a partnership is:
Double taxation
300
The major advantage of an LLC compared to an S corporation is:
It has flexible ownership rules.
400
In a sole proprietorship, the workload for the owner is:
What is heavy
400
Compared to a corporation, the major advantage of a partnership is:
The avoidance of double taxation.
400
The degree of liability protection for an LLP depends on the laws in:
The state where the LLP is set up
400
To avoid double taxation, a new type of corporation was formed. This is called an:
S Corporation
400
From a franchisee's perspective, the advantages of franchising are:
Less risk and brand recognition
500
True or false, taxes on the income of a sole proprietorship are paid by the owner.
What is true
500
Death of a partner causes:
The partnership to be terminated.
500
Three types of partnerships are:
General, limited and limited liability.
500
S corporation are taxed in the same manner as:
Partnerships
500
From the franchisee's perspective, the major disadvantages of franchising are:
Lack of control and continuing fees
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