LSB 3213 John Holden Oklahoma State
Exam 3 Q&A 100% Guaranteed Pass
All of the following are methods that a sole proprietorship can raise money
except
A) Private loans.
B) Commercial loans.
C) Sell ownership in the business.
D) Line of credit - ✔✔Sell ownership in the business
Which of the following is true about a sole proprietorship?
A) It is subject to corporate income tax.
B) Sole proprietorships face double taxation.
C) The owner reports income and expenses on the owner's own tax return.
D) The owner must file a tax return on behalf of the business. - ✔✔C) The
owner reports income and expenses on the owner's own tax return.
The person who is entitled to the profits of a business based on the
percentage of
ownerships is
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,A) Executive
B) Manager
C) Board member
D) Principal - ✔✔D) Principal
Reid Sterling owns a sole proprietorship called Dunkle Distributing. Dunkle
Distributing
is a
A) Legal Name
B) Brand Name
C) Commercial Name
D) Trade Name - ✔✔d. a trade name.
Which statement below is correct about a sole proprietorship?
A) It can have multiple owners.
B) It is created by filing bylaws.
C) It has low start-up costs and minimal filing.
D) It faces double taxation - ✔✔C) It has low start-up costs and minimal
filing
Gwendolyn Melvin wishes to start a children's sports store called, "Just Let
'Em Play!" as
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, a sole proprietor. What form must she file so that she can use another
name than her own?
A) Name Certificate
B) DBA Certificate
C) UCC-1 statement
D) Disclosure statement - ✔✔B) DBA Certificate
Josh is a sole proprietor of an ice cream shop. Regina, a customer, slips
and fall on some
melted mint chocolate chip ice cream on the floor and breaks her leg.
Regina files suit and wins a
judgment of $50,000. Josh does not have any insurance and the total value
of the assets of the ice
cream shop is $10,000. Which statement below is correct?
A) Josh will not be required to pay anything because he does not have
insurance.
B) Josh will have to pay $10,000 and then set up a payment plan to pay off
the balance.
C) Josh will have to use his own personal assets to pay the remainder of
the judgment.
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
Exam 3 Q&A 100% Guaranteed Pass
All of the following are methods that a sole proprietorship can raise money
except
A) Private loans.
B) Commercial loans.
C) Sell ownership in the business.
D) Line of credit - ✔✔Sell ownership in the business
Which of the following is true about a sole proprietorship?
A) It is subject to corporate income tax.
B) Sole proprietorships face double taxation.
C) The owner reports income and expenses on the owner's own tax return.
D) The owner must file a tax return on behalf of the business. - ✔✔C) The
owner reports income and expenses on the owner's own tax return.
The person who is entitled to the profits of a business based on the
percentage of
ownerships is
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,A) Executive
B) Manager
C) Board member
D) Principal - ✔✔D) Principal
Reid Sterling owns a sole proprietorship called Dunkle Distributing. Dunkle
Distributing
is a
A) Legal Name
B) Brand Name
C) Commercial Name
D) Trade Name - ✔✔d. a trade name.
Which statement below is correct about a sole proprietorship?
A) It can have multiple owners.
B) It is created by filing bylaws.
C) It has low start-up costs and minimal filing.
D) It faces double taxation - ✔✔C) It has low start-up costs and minimal
filing
Gwendolyn Melvin wishes to start a children's sports store called, "Just Let
'Em Play!" as
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, a sole proprietor. What form must she file so that she can use another
name than her own?
A) Name Certificate
B) DBA Certificate
C) UCC-1 statement
D) Disclosure statement - ✔✔B) DBA Certificate
Josh is a sole proprietor of an ice cream shop. Regina, a customer, slips
and fall on some
melted mint chocolate chip ice cream on the floor and breaks her leg.
Regina files suit and wins a
judgment of $50,000. Josh does not have any insurance and the total value
of the assets of the ice
cream shop is $10,000. Which statement below is correct?
A) Josh will not be required to pay anything because he does not have
insurance.
B) Josh will have to pay $10,000 and then set up a payment plan to pay off
the balance.
C) Josh will have to use his own personal assets to pay the remainder of
the judgment.
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
