Homework answers / question archive / 1) Establishing a sole proprietorship generally requires the owner to organize formally through the state government and file a legal ownership agreement

1) Establishing a sole proprietorship generally requires the owner to organize formally through the state government and file a legal ownership agreement

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1) Establishing a sole proprietorship generally requires the owner to organize formally through the state government and file a legal ownership agreement.

a) True
b) False

2) A corporation is a legal entity created by the authority of a state government, separate and distinct from its owners.

a) True
b) False

3) Articles of incorporation, prepared by a business that wishes to incorporate, normally include (among other things) the corporation's name and purpose, its location, and provisions for capital stock.

a) True
b) False

4) Corporations are usually more heavily regulated by governments than are sole proprietorships and partnerships.

a) True
b) False

5) The stock of a closely-held corporation generally does not trade on a stock exchange.

a) True
b) False

6) The difficulty of transferring ownership is one disadvantage of organizing a company as a corporation.

a) True
b) False

7) Most corporations are subject to extensive government regulation.

a) True
b) False

8) The stock market crash in 1929 led to the beginning of extensive regulation of trading on stock exchanges.

a) True
b) False

9) The Securities and Exchange Commission was established in response to the accounting scandals that occurred in 2001 and 2002.

a) True
b) False

10) Double taxation is a significant disadvantage of the partnership form of business organization.

a) True
b) False