Question 1

Which of the following is a voluntary association between two or more persons who co-own a business for a profit?

Accepted Answer

A)  Partnership
B)  Joint entity
C)  Joint proprietorship
D)  Joint corporation
E)  Co-owned businessF) None of the above
G) C) and E)

Question 2

An S corporation cannot have more than 75 shareholders.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is a group that comes together for the explicit purpose of financing a specific large project?

Accepted Answer

A)  A franchise
B)  An enterprise
C)  A joint venture
D)  A business trust
E)  A syndicateF) A) and D)
G) A) and E)

Question 4

A limited partnership and a limited liability partnership refer to the same type of business organization.

Accepted Answer

A) True 
 B)False  False

Question 5

In Japan,which of the following statements is false regarding limited liability partnerships?

Accepted Answer

A)  In regard to profits,Japan's limited liability partnership law requires that the members manage the business and negotiate among each other to determine how profits and losses should be distributed among individual members.
B)  Japan's limited liability partnership law places restrictions on the distribution of partnership assets.
C)  Japan's limited liability partnership law limits the liability of its members by their capital contribution.
D)  When members are establishing the rules of the limited liability partnership,Japan's limited liability partnership law requires either the agreement of all members or a majority of at least two-thirds of the members.
E)  The limited liability partnership has been recognized in Japan since the 1950s.F) A) and B)
G) None of the above

Question 6

Shareholders elect the members of the board of directors of a corporation.

Accepted Answer

A) True 
 B)False

Question 7

A limited partnership is usually not affected by the death of a limited partner.

Accepted Answer

A) True 
 B)False

Question 8

A limited partnership consists of limited partners,but not general partners.

Accepted Answer

A) True 
 B)False

Question 9

An LLC is considered a citizen of every state in which its members reside for purposes of jurisdiction.

Accepted Answer

A) True 
 B)False

Question 10

Which statement is true regarding S corporations?

Accepted Answer

A)  They may be formed under federal law.
B)  They are considered partnerships yet taxed like corporations as long as they follow regulations.
C)  Shareholders do not report profit on their personal income tax forms.
D)  They cannot have more than 80 shareholders.
E)  Income is taxed only when distributed to the shareholders,who must not report the income on their personal income tax forms.F) A) and D)
G) C) and D) A

Question 11

Which of the following are franchises in which the franchisor manufactures a product and licenses a dealer to sell the product in an exclusive territory?

Accepted Answer

A)  Manufacturing arrangement
B)  Chain-style business operation
C)  Approved business franchise
D)  Acknowledged standards operation
E)  DistributorshipF) All of the above
G) A) and D)

Question 12

Which of the following would be an appropriate form of business organization for Daria and her parents,such that her parents could invest but not participate in management?

Accepted Answer

A)  Managed partnership
B)  Limited partnership
C)  Combined partnership
D)  General partnership
E)  Family-Based partnershipF) A) and D)
G) A) and C)

Question 13

When a person decides to go into business on his or her own without further formality,what do they form?

Accepted Answer

A)  Sole proprietorship
B)  Single entity
C)  Sole entrepreneurship
D)  Individual entity
E)  Single entrepreneurshipF) B) and E)
G) B) and D) A

Question 14

Which of the following statements is true about a joint venture?

Accepted Answer

A)  A joint venture is automatically terminated when one member dies.
B)  A joint venture is similar to a partnership as they are usually both created for making and selling a single product.
C)  Courts frequently apply partnership law to joint ventures.
D)  Members of a joint venture are agents of the other members.
E)  Although a formal agreement is not necessary for a partnership,it is necessary for a joint venture.F) A) and C)
G) A) and D)

Question 15

Cooperatives must be incorporated.

Accepted Answer

A) True 
 B)False

Question 16

In which of the following does the franchisor provide the franchisee with the formula or necessary ingredient to manufacture a product?

Accepted Answer

A)  Distributorship
B)  Acknowledged standards operation
C)  Chain-style business operation
D)  Approved business franchise
E)  Manufacturing arrangementF) D) and E)
G) B) and D)

Question 17

Elias and his rich friends want to purchase a professional baseball team and need to raise a large amount of money in a short time.Which of the following forms of business organization is often used in Elias' situation?

Accepted Answer

A)  Syndicate.
B)  Cooperative.
C)  Sole proprietorship.
D)  Limited Liability Partnership.
E)  Joint stock company.F) A) and C)
G) A) and E)

Question 18

Which of the following is a partnership agreement in which company members hold transferable shares,while all the goods of the company are held in the names of the partners?

Accepted Answer

A)  A joint partnership
B)  A collusive partnership
C)  A collusive corporation
D)  A joint stock company
E)  A joint corporationF) A) and B)
G) C) and D)

Question 19

Which of the following statements is true regarding Rashi's inspections of franchisees' kitchens?

Accepted Answer

A)  Franchise law prohibits such inspections because a franchisee is seen as a separate corporation.
B)  Rashi had the right to do so only if she can establish the existence of customer complaints.
C)  Franchise law prohibits such inspections because a franchisee is seen as a separate partnership.
D)  Rashi had the right to do so only if workers' compensation claims had been filed against the franchisees involved.
E)  Rashi had the right to inspect the kitchens.F) A) and E)
G) B) and C)

Question 20

The president of Kool Science wants to draw up a written contract because it is unclear what type of law will be applied if there are problems.However,the president of Language Fun states that,although it is always a good idea to have a written contract,it is not necessary because partnership law will be applied if there are problems.Who is correct?

Accepted Answer

A)  Language Fun's president is correct because a joint venture may be formed without drawing up a formal agreement since the parties are required to file a certificate of joint venture with the state.
B)  Language Fun's president is correct because a joint venture may be formed without drawing up a formal agreement,and courts frequently apply partnership law to joint ventures.
C)  Kool Science's president is correct because courts will not know what type of law to apply without an express written provision in a contract.
D)  Kool Science's president is correct because a formal agreement is required for a joint venture.
E)  Neither person is correct.F) C) and E)
G) B) and D)

Exam 35: Forms of Business Organization

Which of the following is a voluntary association between two or more persons who co-own a business for a profit?

Correct Answer
verified

An S corporation cannot have more than 75 shareholders.

Correct Answer
verified

Which of the following is a group that comes together for the explicit purpose of financing a specific large project?

Correct Answer
verified

A limited partnership and a limited liability partnership refer to the same type of business organization.

Correct Answer
verified
False

In Japan,which of the following statements is false regarding limited liability partnerships?

Correct Answer
verified

Shareholders elect the members of the board of directors of a corporation.

Correct Answer
verified

A limited partnership is usually not affected by the death of a limited partner.

Correct Answer
verified

A limited partnership consists of limited partners,but not general partners.

Correct Answer
verified

An LLC is considered a citizen of every state in which its members reside for purposes of jurisdiction.

Correct Answer
verified

Which statement is true regarding S corporations?

Correct Answer
verified
A

Which of the following are franchises in which the franchisor manufactures a product and licenses a dealer to sell the product in an exclusive territory?

Correct Answer
verified

Which of the following would be an appropriate form of business organization for Daria and her parents,such that her parents could invest but not participate in management?

Correct Answer
verified

When a person decides to go into business on his or her own without further formality,what do they form?

Correct Answer
verified
A

Which of the following statements is true about a joint venture?

Correct Answer
verified

Cooperatives must be incorporated.

Correct Answer
verified

In which of the following does the franchisor provide the franchisee with the formula or necessary ingredient to manufacture a product?

Correct Answer
verified

Elias and his rich friends want to purchase a professional baseball team and need to raise a large amount of money in a short time.Which of the following forms of business organization is often used in Elias' situation?

Correct Answer
verified

Which of the following is a partnership agreement in which company members hold transferable shares,while all the goods of the company are held in the names of the partners?

Correct Answer
verified

Which of the following statements is true regarding Rashi's inspections of franchisees' kitchens?

Correct Answer
verified

Correct Answer
verified

Exam 35: Forms of Business Organization

Which of the following is a voluntary association between two or more persons who co-own a business for a profit?

Correct AnswerverifiedShow Answer

An S corporation cannot have more than 75 shareholders.

Correct AnswerverifiedShow Answer

Which of the following is a group that comes together for the explicit purpose of financing a specific large project?

Correct AnswerverifiedShow Answer

A limited partnership and a limited liability partnership refer to the same type of business organization.

Correct AnswerverifiedFalse

In Japan,which of the following statements is false regarding limited liability partnerships?

Correct AnswerverifiedShow Answer

Shareholders elect the members of the board of directors of a corporation.

Correct AnswerverifiedShow Answer

A limited partnership is usually not affected by the death of a limited partner.

Correct AnswerverifiedShow Answer

A limited partnership consists of limited partners,but not general partners.

Correct AnswerverifiedShow Answer

An LLC is considered a citizen of every state in which its members reside for purposes of jurisdiction.

Correct AnswerverifiedShow Answer

Which statement is true regarding S corporations?

Correct AnswerverifiedA

Which of the following are franchises in which the franchisor manufactures a product and licenses a dealer to sell the product in an exclusive territory?

Correct AnswerverifiedShow Answer

Which of the following would be an appropriate form of business organization for Daria and her parents,such that her parents could invest but not participate in management?

Correct AnswerverifiedShow Answer

When a person decides to go into business on his or her own without further formality,what do they form?

Correct AnswerverifiedA

Which of the following statements is true about a joint venture?

Correct AnswerverifiedShow Answer

Cooperatives must be incorporated.

Correct AnswerverifiedShow Answer

In which of the following does the franchisor provide the franchisee with the formula or necessary ingredient to manufacture a product?

Correct AnswerverifiedShow Answer

Elias and his rich friends want to purchase a professional baseball team and need to raise a large amount of money in a short time.Which of the following forms of business organization is often used in Elias' situation?

Correct AnswerverifiedShow Answer

Which of the following is a partnership agreement in which company members hold transferable shares,while all the goods of the company are held in the names of the partners?

Correct AnswerverifiedShow Answer

Which of the following statements is true regarding Rashi's inspections of franchisees' kitchens?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
False

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified