©BRAINBARTER EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
ENTR 460-Midterm Spr. '24 Exam Study
Guide.
Characteristics one should consider when establishing a business organization structure for the
new venture include: - answer✔investor liability
liquidity of ownership
tax consequences
A propiertorship is a business venture characterized by: - answer✔unlimited liability exposure
for the proprietor
A general partnership is a business venture owned by two or more individuals ("partners") who
are each personally liable for the venture's liabilities. - answer✔True
A limited partnership is a business venture where ALL partners' liability for venture obligation is
limited to the amount paid for partnership interests. - answer✔False
Except in legal situations where courts are able to "pierce the corporate veil", shareholders
have limited liability for the C corporation's obligations. - answer✔True
1|Page
, ©BRAINBARTER EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Why do venture investors generally prefer to invest in a C corporation? - answer✔Tax simplicity
and ease of selling the business
The most common type of non-corporate business entity that most entrepreneurs from at the
outset of a business to limit individual liability is: - answer✔Limited Liability Company(LLC)
Which entity types are taxed at the personal tax rate of its owners/shareholders? - answer✔S
corporation
Sole proprietorship
Limited Liability Company
The four of intellectual property protection include: - answer✔Patents
Trade secrets
Trademarks
Copyrights
The four types of patents include: - answer✔Utility
Design
Plant
Business Method
2|Page
ALL RIGHTS RESERVED.
ENTR 460-Midterm Spr. '24 Exam Study
Guide.
Characteristics one should consider when establishing a business organization structure for the
new venture include: - answer✔investor liability
liquidity of ownership
tax consequences
A propiertorship is a business venture characterized by: - answer✔unlimited liability exposure
for the proprietor
A general partnership is a business venture owned by two or more individuals ("partners") who
are each personally liable for the venture's liabilities. - answer✔True
A limited partnership is a business venture where ALL partners' liability for venture obligation is
limited to the amount paid for partnership interests. - answer✔False
Except in legal situations where courts are able to "pierce the corporate veil", shareholders
have limited liability for the C corporation's obligations. - answer✔True
1|Page
, ©BRAINBARTER EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Why do venture investors generally prefer to invest in a C corporation? - answer✔Tax simplicity
and ease of selling the business
The most common type of non-corporate business entity that most entrepreneurs from at the
outset of a business to limit individual liability is: - answer✔Limited Liability Company(LLC)
Which entity types are taxed at the personal tax rate of its owners/shareholders? - answer✔S
corporation
Sole proprietorship
Limited Liability Company
The four of intellectual property protection include: - answer✔Patents
Trade secrets
Trademarks
Copyrights
The four types of patents include: - answer✔Utility
Design
Plant
Business Method
2|Page
