ENT-2113 Set Exam Tested
Questions & Reviewed Correct
Detailed Answers
New Update Study Material!!
1. The effective application of _____ is one means to limit liability concerns of
the new venture. - ANSWER insurance
2. Which of the following incorporation formations are required to pay
income tax which results in double taxation? - ANSWER Subchapter C
Corporations
3. Which of the following features of the LLC are similar to the features of the
Subchapter S Corporation? - ANSWER limited liability
4. One disadvantage of the Subchapter S Corporation is the limitation to the
number of shareholders, which is currently set at a maximum of ____
shareholders. - ANSWER 75
5. General and limited are two broad categories of _______. - ANSWER
partnership
6. Which type of business formation involves two or more individuals sharing
unlimited liability in a business venture? - ANSWER general
partnership
,7. Which type of business formation has at least two individuals who are
partners in a venture but only one person declares a full pass through of all
income on his or her federal taxes and assumes unlimited liability? -
ANSWER limited liability partnership
8. Subchapter S and Subchapter C Corporations take their names from
subchapters in the _______ Code. - ANSWER Internal Revenue
9. T or F: A limited liability corporation (LLC) is similar to a subchapter C
corporation in that all of the information required is the same. - ANSWER
True
10. Because it is expensive to obtain and maintain, a _____ should only be
obtained if it contributes to the sustainable competitive advantage of the
organization. - ANSWER patent
11. Which law requires that there be no discrimination in the hiring,
management or dismissal of employees with disabilities? - ANSWER
Americans with Disabilities Act
12. In new corporations, the shareholders and board of ______ are often the
same individuals. - ANSWER directors
13. A board of ______ is required of corporations, but a board of ____ is
optional regardless of the legal form. - ANSWER directors; advisors
, 14. Which of the following is true regarding a board of advisors? - ANSWER -
the group is formed a the discretion of the founder
-the group advises the founder on key issues
-the group is composed of individuals outside the business
15. A ____ consist of individuals who have a fiduciary responsibility to the
shareholders of an organization. - ANSWER board of directors
16. A board of _____ is formed at the discretion of the founders and
composed of individuals outside the business who advise the founders. -
ANSWER advisors
17. _____ insures businesses from damages caused by workers in the
performance of their jobs. - ANSWER bonding
18. Identify the similarities between general partnerships and sole
proprietorships? - ANSWER -expenses flow through to personal tax forms
-profits or losses are reported as personal income
19. T or F: It is advisable for an entrepreneur to employ formal written
contracts whenever there is an agreement with another party - ANSWER
True
20. Which of the following statements are true regarding the items in a
contract? - ANSWER it is not necessary to reveal any patents,
trademarks or copyrights
Questions & Reviewed Correct
Detailed Answers
New Update Study Material!!
1. The effective application of _____ is one means to limit liability concerns of
the new venture. - ANSWER insurance
2. Which of the following incorporation formations are required to pay
income tax which results in double taxation? - ANSWER Subchapter C
Corporations
3. Which of the following features of the LLC are similar to the features of the
Subchapter S Corporation? - ANSWER limited liability
4. One disadvantage of the Subchapter S Corporation is the limitation to the
number of shareholders, which is currently set at a maximum of ____
shareholders. - ANSWER 75
5. General and limited are two broad categories of _______. - ANSWER
partnership
6. Which type of business formation involves two or more individuals sharing
unlimited liability in a business venture? - ANSWER general
partnership
,7. Which type of business formation has at least two individuals who are
partners in a venture but only one person declares a full pass through of all
income on his or her federal taxes and assumes unlimited liability? -
ANSWER limited liability partnership
8. Subchapter S and Subchapter C Corporations take their names from
subchapters in the _______ Code. - ANSWER Internal Revenue
9. T or F: A limited liability corporation (LLC) is similar to a subchapter C
corporation in that all of the information required is the same. - ANSWER
True
10. Because it is expensive to obtain and maintain, a _____ should only be
obtained if it contributes to the sustainable competitive advantage of the
organization. - ANSWER patent
11. Which law requires that there be no discrimination in the hiring,
management or dismissal of employees with disabilities? - ANSWER
Americans with Disabilities Act
12. In new corporations, the shareholders and board of ______ are often the
same individuals. - ANSWER directors
13. A board of ______ is required of corporations, but a board of ____ is
optional regardless of the legal form. - ANSWER directors; advisors
, 14. Which of the following is true regarding a board of advisors? - ANSWER -
the group is formed a the discretion of the founder
-the group advises the founder on key issues
-the group is composed of individuals outside the business
15. A ____ consist of individuals who have a fiduciary responsibility to the
shareholders of an organization. - ANSWER board of directors
16. A board of _____ is formed at the discretion of the founders and
composed of individuals outside the business who advise the founders. -
ANSWER advisors
17. _____ insures businesses from damages caused by workers in the
performance of their jobs. - ANSWER bonding
18. Identify the similarities between general partnerships and sole
proprietorships? - ANSWER -expenses flow through to personal tax forms
-profits or losses are reported as personal income
19. T or F: It is advisable for an entrepreneur to employ formal written
contracts whenever there is an agreement with another party - ANSWER
True
20. Which of the following statements are true regarding the items in a
contract? - ANSWER it is not necessary to reveal any patents,
trademarks or copyrights
