ENT 352 Exam 1 Questions with
complete solution 2025/2026
1. Minimizing exposure to liabilities, taxes, and ensuring efficiency - correct answer ✔By carefully
considering the forms of business entity and choosing the most appropriate one.
2. NOT a primary consideration in the choice of business entity - correct answer ✔The entrepreneur's
lifestyle.
3. Governance of a corporation is determined by - correct answer ✔The domicile of the entity, e.g., the
state in which it was incorporated.
4. Most large business organizations operate as - correct answer ✔C corporations.
5. A corporation is owned by - correct answer ✔Shareholders.
6. To qualify for S corporation status, must have - correct answer ✔No more than 100 shareholders.
7. A partnership is carried on by at least - correct answer ✔2 partners.
8. NOT a type of partnership - correct answer ✔Sole partnership.
9. A written partnership agreement can prevent - correct answer ✔Future misunderstandings by
clarifying terms, division of profits and losses, and duties of partners.
10. A strategically astute attorney enhances the bottom line by - correct answer ✔Helping craft the
best structure for the business, providing sound advice, and acting as a sounding board.
complete solution 2025/2026
1. Minimizing exposure to liabilities, taxes, and ensuring efficiency - correct answer ✔By carefully
considering the forms of business entity and choosing the most appropriate one.
2. NOT a primary consideration in the choice of business entity - correct answer ✔The entrepreneur's
lifestyle.
3. Governance of a corporation is determined by - correct answer ✔The domicile of the entity, e.g., the
state in which it was incorporated.
4. Most large business organizations operate as - correct answer ✔C corporations.
5. A corporation is owned by - correct answer ✔Shareholders.
6. To qualify for S corporation status, must have - correct answer ✔No more than 100 shareholders.
7. A partnership is carried on by at least - correct answer ✔2 partners.
8. NOT a type of partnership - correct answer ✔Sole partnership.
9. A written partnership agreement can prevent - correct answer ✔Future misunderstandings by
clarifying terms, division of profits and losses, and duties of partners.
10. A strategically astute attorney enhances the bottom line by - correct answer ✔Helping craft the
best structure for the business, providing sound advice, and acting as a sounding board.
