Lenb Business Orgs Exam Study Guide
Questions and Answers 100% Pass
Deciding what form of business to create is on of the ______ important
decisions a business makes. - ANSWER✔✔-most
A ______ proprietorship is a business in which one person is in control of
the management and profits. - ANSWER✔✔-sole
If a person started doing business without thinking about the form of the
business, he or she would be a(n) ______. - ANSWER✔✔-sole proprietor
Which of the following is not a recognized advantage of a sole
proprietorship? - ANSWER✔✔-Funding is unlimited as stock can be issued
to address capital needs.
The proprietor is immune from personal liability for all losses.
Identify a recognized disadvantage of a sole proprietorship. -
ANSWER✔✔-Funding is limited to personal funds and loans.
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 1/20
,If a person decides to go into business on his or her own, he or she is
creating a ______. - ANSWER✔✔-sole proprietorship
A(n) ______ is the single person at the head of a sole proprietorship -
ANSWER✔✔-sole proprietor
According to __________, a partnership is a voluntary association between
two or more persons who co-own a business for profit. - ANSWER✔✔-the
Uniform Partnership Act (UPA)
Which of the following is a recognized disadvantage of a sole
proprietorship? - ANSWER✔✔-The proprietor has personal liability for all
losses.
Which of the following is not a recognized advantage of a partnership? -
ANSWER✔✔-Individual partners have immunity from personal liability
for all business losses.
Financial capital can be raised through stock issuance.
A partnership is a ______ association between two or more persons who
co-own a business for ______. - ANSWER✔✔-voluntary; profit
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 2/20
, Which of the following is a recognized disadvantage of a partnership? -
ANSWER✔✔-Each partner has personal liability for all business losses.
Which of the following is not a duty of partners to one another? -
ANSWER✔✔-The beneficiary duty to the other partners
A written agreement that creates a partnership is called the articles of
______. - ANSWER✔✔-partnership
Identify a recognized disadvantage of a partnership. - ANSWER✔✔-In
most cases, each partner has personal liability for the business losses of
another partner.
A partnership is a ______ association between two or more persons who
co-own a business for ______. - ANSWER✔✔-voluntary; profit
The articles of partnership usually include all but which of the following
information? - ANSWER✔✔-The classes of stock issued by the partnership
Partners must, in good faith, work for the benefit of their partnership and
refrain from taking any kind of action that would undermine the
partnership. This is known as the partners' ______. - ANSWER✔✔-
fiduciary duty
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 3/20
Questions and Answers 100% Pass
Deciding what form of business to create is on of the ______ important
decisions a business makes. - ANSWER✔✔-most
A ______ proprietorship is a business in which one person is in control of
the management and profits. - ANSWER✔✔-sole
If a person started doing business without thinking about the form of the
business, he or she would be a(n) ______. - ANSWER✔✔-sole proprietor
Which of the following is not a recognized advantage of a sole
proprietorship? - ANSWER✔✔-Funding is unlimited as stock can be issued
to address capital needs.
The proprietor is immune from personal liability for all losses.
Identify a recognized disadvantage of a sole proprietorship. -
ANSWER✔✔-Funding is limited to personal funds and loans.
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 1/20
,If a person decides to go into business on his or her own, he or she is
creating a ______. - ANSWER✔✔-sole proprietorship
A(n) ______ is the single person at the head of a sole proprietorship -
ANSWER✔✔-sole proprietor
According to __________, a partnership is a voluntary association between
two or more persons who co-own a business for profit. - ANSWER✔✔-the
Uniform Partnership Act (UPA)
Which of the following is a recognized disadvantage of a sole
proprietorship? - ANSWER✔✔-The proprietor has personal liability for all
losses.
Which of the following is not a recognized advantage of a partnership? -
ANSWER✔✔-Individual partners have immunity from personal liability
for all business losses.
Financial capital can be raised through stock issuance.
A partnership is a ______ association between two or more persons who
co-own a business for ______. - ANSWER✔✔-voluntary; profit
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 2/20
, Which of the following is a recognized disadvantage of a partnership? -
ANSWER✔✔-Each partner has personal liability for all business losses.
Which of the following is not a duty of partners to one another? -
ANSWER✔✔-The beneficiary duty to the other partners
A written agreement that creates a partnership is called the articles of
______. - ANSWER✔✔-partnership
Identify a recognized disadvantage of a partnership. - ANSWER✔✔-In
most cases, each partner has personal liability for the business losses of
another partner.
A partnership is a ______ association between two or more persons who
co-own a business for ______. - ANSWER✔✔-voluntary; profit
The articles of partnership usually include all but which of the following
information? - ANSWER✔✔-The classes of stock issued by the partnership
Partners must, in good faith, work for the benefit of their partnership and
refrain from taking any kind of action that would undermine the
partnership. This is known as the partners' ______. - ANSWER✔✔-
fiduciary duty
Copyright ©EMILLYCHARLOTE 2025 ACADEMIC YEAR, ALL RIGHTS RESERVED. Page 3/20
