FIN 325 exam 2 | FINANCE 325 Exam 2 | All Questions and
Correct Answers | Graded A+ | Verified Answers | Just
Released
A business owned by a solitary individual who has unlimited liability for its debt is
called a:
A) Corporation.
B) Sole proprietorship.
C) General partnership.
D) Limited partnership.
E) Limited liability company. ------------Correct Answer--------------------B) Sole
proprietorship.
A business formed by two or more individuals who each have unlimited liability
for all of the firm's business debts is called a:
A) Corporation.
B) Sole proprietorship.
C) General partnership.
D) Limited partnership.
E) Limited liability company. ------------Correct Answer--------------------C) General
partnership.
A business partner whose potential financial loss in the partnership will not
exceed his or her investment in that partnership is called a:
,A) General partner.
B) Sole proprietor.
C) Limited partner.
D) Corporate shareholder.
E) Zero partner. ------------Correct Answer--------------------C) Limited partner.
A business created as a distinct legal entity and treated as a legal "person" is
called a:
A) Corporation.
B) Sole proprietorship.
C) General partnership.
D) Limited partnership.
E) Unlimited liability company. ------------Correct Answer--------------------A)
Corporation.
Which one of the following statements about a sole proprietorship is correct?
A) A sole proprietorship is designed to protect the personal assets of the owner.
B) The profits of a sole proprietorship are subject to double taxation.
C) The owner of a sole proprietorship is personally responsible for all of the
company's debts.
D) There are very few sole proprietorships remaining in the U.S. today.
E) A sole proprietorship is structured the same as a limited liability company. ------
------Correct Answer--------------------C) The owner of a sole proprietorship is
personally responsible for all of the company's debts.
, Which one of the following statements concerning a sole proprietorship is
correct?
A) The life of a sole proprietorship is potentially unlimited.
B) A sole proprietor can generally raise large sums of capital quite easily.
C) Transferring ownership of a sole proprietorship is easier than transferring
ownership of a corporation.
D) A sole proprietorship is taxed the same as a C corporation.
E) It is easy to create a sole proprietorship. ------------Correct Answer-------------------
-E) It is easy to create a sole proprietorship.
Which of the following individuals have unlimited liability based on their
ownership interest?
I. General partner
II. Sole proprietor
III. Stockholder
IV. Limited partner
A) II only.
B) I and II only.
C) II and IV only.
D) I, II, and III only.
E) I, II, and IV only. ------------Correct Answer--------------------B) I and II only.
Correct Answers | Graded A+ | Verified Answers | Just
Released
A business owned by a solitary individual who has unlimited liability for its debt is
called a:
A) Corporation.
B) Sole proprietorship.
C) General partnership.
D) Limited partnership.
E) Limited liability company. ------------Correct Answer--------------------B) Sole
proprietorship.
A business formed by two or more individuals who each have unlimited liability
for all of the firm's business debts is called a:
A) Corporation.
B) Sole proprietorship.
C) General partnership.
D) Limited partnership.
E) Limited liability company. ------------Correct Answer--------------------C) General
partnership.
A business partner whose potential financial loss in the partnership will not
exceed his or her investment in that partnership is called a:
,A) General partner.
B) Sole proprietor.
C) Limited partner.
D) Corporate shareholder.
E) Zero partner. ------------Correct Answer--------------------C) Limited partner.
A business created as a distinct legal entity and treated as a legal "person" is
called a:
A) Corporation.
B) Sole proprietorship.
C) General partnership.
D) Limited partnership.
E) Unlimited liability company. ------------Correct Answer--------------------A)
Corporation.
Which one of the following statements about a sole proprietorship is correct?
A) A sole proprietorship is designed to protect the personal assets of the owner.
B) The profits of a sole proprietorship are subject to double taxation.
C) The owner of a sole proprietorship is personally responsible for all of the
company's debts.
D) There are very few sole proprietorships remaining in the U.S. today.
E) A sole proprietorship is structured the same as a limited liability company. ------
------Correct Answer--------------------C) The owner of a sole proprietorship is
personally responsible for all of the company's debts.
, Which one of the following statements concerning a sole proprietorship is
correct?
A) The life of a sole proprietorship is potentially unlimited.
B) A sole proprietor can generally raise large sums of capital quite easily.
C) Transferring ownership of a sole proprietorship is easier than transferring
ownership of a corporation.
D) A sole proprietorship is taxed the same as a C corporation.
E) It is easy to create a sole proprietorship. ------------Correct Answer-------------------
-E) It is easy to create a sole proprietorship.
Which of the following individuals have unlimited liability based on their
ownership interest?
I. General partner
II. Sole proprietor
III. Stockholder
IV. Limited partner
A) II only.
B) I and II only.
C) II and IV only.
D) I, II, and III only.
E) I, II, and IV only. ------------Correct Answer--------------------B) I and II only.
