Chapter 3 Questions with certified
solutions rated a plus
Terms in this set (10)
A sole proprietorship Jaxon wins a contest where he is awarded a lifetime supply
of hot dogs, which are all delivered to his house at the same
time. Afraid he will not be able to eat them all before they
spoil (if hot dogs do indeed spoil), Jaxon comes up with a
plan to make some money. He buys some buns and sets up a
table outside a football game at his local college, where he
sells hot dogs for $1 each. What kind of business
organization has Jaxon created?
A sole proprietorship
A corporation
A general partnership
A limited partnership
If one of Jaxon's sole proprietorship hot dogs gives a
customer food poisoning, and the customer sues Jaxon and
wins $50,000 in court, how much of that judgment can
$50,000 Jaxon be made to personally pay out of pocket? $5,000
$50,000
$0
$25,000
, The income tax rate for the Suppose Jaxon's hot dog business is wildly successful, and he
business is much lower than decides to cash out and sell the business to his friend Amal.
the income tax rate for
Amal doesn't know much about business law though, so Jaxon
individuals.
tries to tell her about his sole proprietorship. Which of the
following is not an advantage of sole proprietorships he should
tell Amal about?
The income tax rate for the business is much lower than the
income tax rate for individuals.
Maintaining a sole proprietorship is inexpensive. The
control of the business is simple because only one person
makes all the decisions.
No approval from anyone else is necessary to make changes to the
business's operations.
Almost all of the default Each state's partnership statute (usually based on the UPA or
rules except those that RUPA) sets forth rules for governing general partnerships.
govern the duties owed by Which of these default rules may be changed if the partners
the partners to each agree to do so?
other None of the default rules
All of the default rules
Almost all of the default rules except those that govern the
duties owed by the partners to each other Almost all of the
default rules except those that govern the rights of each
partner
solutions rated a plus
Terms in this set (10)
A sole proprietorship Jaxon wins a contest where he is awarded a lifetime supply
of hot dogs, which are all delivered to his house at the same
time. Afraid he will not be able to eat them all before they
spoil (if hot dogs do indeed spoil), Jaxon comes up with a
plan to make some money. He buys some buns and sets up a
table outside a football game at his local college, where he
sells hot dogs for $1 each. What kind of business
organization has Jaxon created?
A sole proprietorship
A corporation
A general partnership
A limited partnership
If one of Jaxon's sole proprietorship hot dogs gives a
customer food poisoning, and the customer sues Jaxon and
wins $50,000 in court, how much of that judgment can
$50,000 Jaxon be made to personally pay out of pocket? $5,000
$50,000
$0
$25,000
, The income tax rate for the Suppose Jaxon's hot dog business is wildly successful, and he
business is much lower than decides to cash out and sell the business to his friend Amal.
the income tax rate for
Amal doesn't know much about business law though, so Jaxon
individuals.
tries to tell her about his sole proprietorship. Which of the
following is not an advantage of sole proprietorships he should
tell Amal about?
The income tax rate for the business is much lower than the
income tax rate for individuals.
Maintaining a sole proprietorship is inexpensive. The
control of the business is simple because only one person
makes all the decisions.
No approval from anyone else is necessary to make changes to the
business's operations.
Almost all of the default Each state's partnership statute (usually based on the UPA or
rules except those that RUPA) sets forth rules for governing general partnerships.
govern the duties owed by Which of these default rules may be changed if the partners
the partners to each agree to do so?
other None of the default rules
All of the default rules
Almost all of the default rules except those that govern the
duties owed by the partners to each other Almost all of the
default rules except those that govern the rights of each
partner
