Chapter 4 Options for Organizing Business Quiz 1

Chapter 4 Options for Organizing Business Quiz

1. Lack of control is a disadvantage of sole proprietorships 
Select one: True False X 
The correct answer is 'True'. 
2. A sole proprietorship has limited sources of funds, which may affect the growth of the business. 
Select one: True ../ False 
The correct answer is 'True'. 
3. If you want to go into business for yourself, the easiest way is a sole proprietorship. 
Select one: True ../ False 
The correct answer is 'True'. 
4. Sole proprietorships typically employ fewer than 50 people. 
Select one: True V False 
The correct answer is 'True'. 
5. All states require partnerships to have articles of partnership. 
Select one: True False V 
The correct answer is 'False'. 
6. Partnerships have fewer regulatory controls than corporations. 
Select one: True V False 
The correct answer is 'True'. 
7. In a general partnership, each partner is liable only for the debts he or she incurs. 
Select one: True False s 
The correct answer is 'False'. 
8. In a partnership, all partners are equally liable. 
Select one: True False V 
The correct answer is 'False'. 
9. S Corporations are more flexible than traditional "C corporations." 
Select one: True ../ False 
The correct answer is 'True'. 
10. In most states, corporations must have "corporation," "incorporated," or "limited" in their names to show that their owners have limited liability. 
Select one: True V False 
The correct answer is 'True'.