Sage Lee is taking this assessment.
1. Which of the following is not one of the three types of business arrangements in the United States? (1 point)
Sole proprietorship
Partnership
Sole partnership
Corporation
2. With a sole proprietorship, who pays the taxes? (1 point)
The shareholders
The company
Both the shareholders and the owner
The owner
3. Which of the following would not be considered an advantage of a sole proprietorship? (1 point)
Decisions can be made quickly without having to consult others.
A proprietor is also responsible for his or her own health insurance.
There are no legal formalities if the business dissolves.
A) All of the profits from the business go right to the owner.
4. What can a proprietor do to minimize personal risk and liability? (1 point)
Change his/her name
Form a limited liability proprietorship
Form a limited liability partnership
Form a limited liability company
5. Why are partnerships often favored over corporations?
(1 point)
They have more power.
They are more successful.
There are no taxes levied on profits.
A partnership structure eliminates the dividend tax levied upon profits realized by the owners.
6. What are the two types of partnerships?
(1 point)
Limited and sole
Genral and private
Limited and general
Private and limited
7. Which of the following would not be considered an advantage of a partnership?
(1 point)
A partnership usually involves low start-up costs.
Each general partner is deemed the agent of the partnership.
It’s easy to form a partnership.
You can share the responsibilities with your partners.
8. As a generic legal term, ___________ means any group of persons with a legal entity.
(1 point)
Corporation
Business
Partnership
Proprietorship
9. Who regulates a corporation?
(1 point)
the government of the state, province, or national government with which it is registered
the bondholders
the corporation's founders
the corporation's union
10. Which of the following is not a legal characteristic of a corporation?
(1 point)
Transferable shares
Perpetual life
Limited liability
Legal protection from law suits