LLC
It is important for business owners to weigh the advantages and disadvantages of each ownership structure because:
a. there is an established procedure for determining the best form of ownership.
b. individual goals and needs differ, which makes each business situation unique.
c. the nature of the business and its financial needs always change over time.
d. most business owners already understand how each form of ownership works.
b. individual goals and needs differ, which makes each business situation unique.
The best way to reduce the disagreements that often occur when two people go into business together is to develop a(n):
a. operating permit.
b. state charter.
c. partnership agreement.
d. DBA document.
c. partnership agreement.
What is the primary disadvantage in using the hybrid (e.g., LLC, LLP) business ownership option?
a. The level of difficulty to form and operate
b. The ability to transfer ownership to another person
c. The lack of universal guidelines among states
d. The lack of resources available to members
c. The lack of universal guidelines among states
Two local business owners want to reduce competition, so they decide to form one organization from their two companies. This is an example of a:
a. hostile takeover.
b. merger.
c. monopoly.
d. trading bloc.
b. merger.
What is the name of the Hurricane that hit Florida two weeks ago?
Helene
Which of the following is an advantage of sole proprietorships:
a. Limited liability
b. Dual taxation
c. Unlimited financial power
d. Quick decision-making
d. Quick decision-making
Which of the following is an advantage of the corporation as a form of business ownership:
a. Less complex requirements
b. Tax advantages
c. Separate owners and managers
d. Limited liability
d. Limited liability
Which of the following forms of business ownership benefit by combining individual resources:
a. Hybrids and general partnerships
b. Sole proprietorships and corporations
c. Limited partnerships and sole proprietorships
d. Hybrids and sole proprietorships
a. Hybrids and general partnerships
A business owner who prefers to maintain complete control of all business activities might consider structuring their venture as a(n):
a. sole proprietorship.
b. “S” corporation.
c. general partnership.
d. limited liability company.
a. sole proprietorship.
Who are the New England Patriots playing this weekend?
Houston Texans
Which of the following is a disadvantage of sole proprietorships:
a. Limited capital
b. Privacy
c. Control
d. Flexibility
a. Limited capital
Which of the following is a disadvantage of corporations:
a. More taxes
b. Unlimited life
c. Reduced financial power
d. Unlimited liability
a. More taxes
Which of the following forms of business ownership has the most potential for financial power:
a. Sole proprietorship
b. Corporation
c. General partnership
d. Limited liability partnership
b. Corporation
Jackie needs to raise a large amount of capital to open additional restaurants. She wants to limit her personal liability. She should consider establishing her business as a:
a. limited liability partnership.
b. general partnership.
c. corporation.
d. sole proprietorship.
c. corporation.
What is the name of the spectacular event Roger Williams Zoo hosts every year during this month?
Jack-O-Lantern Spectacular
Which of the following is an advantage of general partnerships:
a. Limited capital
b. Easy to end
c. Unlimited liability
d. Combined capabilities
d. Combined capabilities
An advantage in forming a business as a hybrid (e.g., LLC, LLP) is that the:
a. owners and managers operate separately.
b. structure offers members a great deal of flexibility.
c. members experience unlimited liability.
d. structure has an unlimited life span.
b. structure offers members a great deal of flexibility.
The legal structure that a business owner chooses affects:
a. government regulation and the nature of the business.
b. the amount of stock issued and capability to expand internationally.
c. taxation rates and government regulation.
d. international tariffs and the ability to control business activities.
c. taxation rates and government regulation.
Individuals who prefer low-risk options should consider structuring their businesses as:
a. sole proprietorships or hybrids.
b. limited partnerships or sole proprietorships.
c. corporations or general partnerships.
d. corporations or hybrids.
d. corporations or hybrids.
What is the name of the Hurricane that just hit Florida a day ago?
Milton
Which of the following is a disadvantage of general partnerships:
a. Increased capital
b. Difficulty in ending
c. Decreased competition
d. Reduced expenses
b. Difficulty in ending
Why would a law firm establish business ownership as a limited liability partnership?
a. To protect innocent partners from the malpractice of another partner
b. So each partner can practice a specialized area of law
c. To take advantage of the benefits of an unlimited life span
d. So that disagreements that often occur in general partnerships can be eliminated
a. To protect innocent partners from the malpractice of another partner
The first step business owners must take when selecting a business ownership option is to
determine the
a. need for local permits.
b. nature of the business.
c. demographics of the target market.
d. lender’s interest rates.
b. nature of the business.
What do owners of all business structures need to do?
a. Provide stockholders with an annual report
b. Consult an attorney before completing registration forms
c. Pay a standard registration fee to the state
d. Verify certification needs and obtain necessary permits
d. Verify certification needs and obtain necessary permits
Who just made a $5 million donation to Feeding America, a national food bank organization, amid the destructive and deadly storms across the southeastern US?
Taylor Swift