Test Bank for Management A Practical Introduction, 2024 Release 10th Edition by Kinicki - Answers Included.pdf

05 Key


1. (p.m114)m Themcorporationmismthemmost mcommonmformmof mbusinessmownership.
FALSE


AACSB: mReflectivemThinking
m Blooms: mKnowledgem Lear
ning mGoal: m05-1
LevelmofmLearning m1: mKnowledgemofmkeymtermsm N
ickelsm- mChapterm05 m#1
Topic: mBasicmFormsmofmBusinessmOwnership



2. (p.m114)m Themthreemmajormformsmof mbusinessmownershipminmthemU.S.maremsolemproprietorships,mpartnerships,m
and mcorporations.
TRUE


AACSB: mReflectivemThinking
m Blooms: mKnowledgem Lear
ning mGoal: m05-1
LevelmofmLearning m1: mKnowledgemofmkeymtermsm N
ickelsm- mChapterm05 m#2
Topic: mBasicmFormsmofmBusinessmOwnership



3. (p.m114)m Few mpeoplemtodaymstart mtheirmownmbusiness.
FALSE


AACSB: mReflectivemThinking
m Blooms: mKnowledgem Lear
ning mGoal: m05-1
LevelmofmLearning m1: mKnowledgemofmkeymtermsm N
ickelsm- mChapterm05 m#3
Topic: mBasicmFormsmofmBusinessmOwnership




1

,4. (p.m115)m Oncemambusinessmismestablished,mit'smalmost mimpossiblemtomchangemfrommonemformmof mbusinessmownershi
pmtomanother.
FALSE


AACSB: mReflectivemThinking
m Blooms: mKnowledgem Lear
ning mGoal: m05-1
LevelmofmLearning m1: mKnowledgemofmkeymtermsm N
ickelsm- mChapterm05 m#4
Topic: mBasicmFormsmofmBusinessmOwnership



5. (p.m114)m Whenmtwomormmorempeoplemlegallymagreemtombecomemco-
ownersmof mambusiness,mthemformmof mbusinessmismcalled mampartnership.
TRUE


AACSB: mReflectivemThinking
m Blooms: mKnowledgem Lear
ning mGoal: m05-1
LevelmofmLearning m1: mKnowledgemofmkeymtermsm N
ickelsm- mChapterm05 m#5
Topic: mBasicmFormsmofmBusinessmOwnership



6. (p.m114)m Amlegalmentitymwithmauthoritymtomact mand mhavemliabilitymseparatemfrommitsmownersmismcalled mampartnership.
FALSE


AACSB: mReflectivemThinking
m Blooms: mKnowledgem Lear
ning mGoal: m05-1
LevelmofmLearning m1: mKnowledgemofmkeymtermsm N
ickelsm- mChapterm05 m#6
Topic: mBasicmFormsmofmBusinessmOwnership



7. (p.m114)m Corporationsmrepresent m20mpercent mof mallmthembusinessesminmthemU.S.mand mearnm81mpercent mof mthemtotalm
U.S.mbusinessmreceipts.
TRUE


AACSB: mReflectivemThinking
m Blooms: mKnowledgem Lear
ning mGoal: m05-1
LevelmofmLearning m1: mKnowledgemofmkeymtermsm N
ickelsm- mChapterm05 m#7
Topic: mBasicmFormsmofmBusinessmOwnership




2

,8. (p.m114)m Amcomparisonmof mthemthreemmajormformsmof mbusinessmownershipmshowsmthat msolemproprietorshipsm
aremusuallymthemmost mdifficult mtypemof mbusinessmtomestablish.
FALSE


AACSB: mReflectivemThinking
m Blooms: mKnowledgem Lear
ning mGoal: m05-1
LevelmofmLearning m1: mKnowledgemofmkeymtermsm N
ickelsm- mChapterm05 m#8
Topic: mBasicmFormsmofmBusinessmOwnership



9. (p.m115)m Themfirst mstepminmstartingmamsolemproprietorshipmismtomfillmout mamproprietorshipmchartermapplicationmformm
and mfilemit mwithmthemstatemgovernment.
FALSE


AACSB: mReflectivemThinking
m Blooms: mKnowledgem Lear
ning mGoal: m05-1
LevelmofmLearning m1: mKnowledgemofmkeymtermsm N
ickelsm- mChapterm05 m#9
Topic: mSolemProprietorship



10. (p.m115)m It mismusuallymeasymtomstart mand mend mamsolemproprietorship.
TRUE


AACSB: mReflectivemThinking
m Blooms: mKnowledgem Lear
ning mGoal: m05-1
LevelmofmLearning m1: mKnowledgemofmkeymtermsm N
ickelsm- mChapterm05 m#10
Topic: mSolemProprietorship



11. (p.m115)m Themprofitsmof mamsolemproprietorshipmaremtaxed masmthempersonalmincomemof mthemowner.
TRUE


AACSB: mReflectivemThinking
m Blooms: mKnowledgem Lear
ning mGoal: m05-1
LevelmofmLearning m1: mKnowledgemofmkeymtermsm N
ickelsm- mChapterm05 m#11
Topic: mSolemProprietorship




3

, 12. (p.m115)m Themsolemproprietorshipmformmof mownershipmtendsmtombemattractivemtompeoplemwhomwant mtominvest m
inmamcompanymwithout mtakingmanmactivemroleminmmanagement.
FALSE


AACSB: mReflectivemThinking
m Blooms: mKnowledgem Lear
ning mGoal: m05-1
LevelmofmLearning m1: mKnowledgemofmkeymtermsm N
ickelsm- mChapterm05 m#12
Topic: mSolemProprietorship



13. (p.m115)m A mmajormadvantagemof msolemproprietorshipsmismthat manmownermhasmlimited mliabilitymformthemdebtsmof mhi
smormhermbusiness.
FALSE


AACSB: mReflectivemThinking
m Blooms: mKnowledgem Lear
ning mGoal: m05-1
LevelmofmLearning m1: mKnowledgemofmkeymtermsm N
ickelsm- mChapterm05 m#13
Topic: mSolemProprietorship



14. (p.m115)m Onemof mthemstrengthsmof mthemsolemproprietorshipmismitsmabilitymtomsustainmrapid mgrowthmbymraisingml
argemamountsmof mfinancialmresources.
FALSE


AACSB: mReflectivemThinking
m Blooms: mKnowledgem Lear
ning mGoal: m05-1
LevelmofmLearning m1: mKnowledgemofmkeymtermsm N
ickelsm- mChapterm05 m#14
Topic: mSolemProprietorship



15. (p.m116)m Themdebtsmof mambusinessmoperated masmamsolemproprietorshipmaremconsidered mtombemthempersonalmdebtsmof
mthemownermof mthembusiness.

TRUE


AACSB: mReflectivemThinking
m Blooms: mKnowledgem Lear
ning mGoal: m05-1
LevelmofmLearning m1: mKnowledgemofmkeymtermsm N
ickelsm- mChapterm05 m#15
Topic: mSolemProprietorship




4