1
CEM 100 Exam 1 Questions with Answers
(100% Correct Answers)
Statutory entity that combines the limited personal liability feature of a
corporation and the partnership feature of taxation at the owner level is termed
a (an) Answer: LLC
Concerning business ownership for construction contracting firms in the US
approximately ____ are individual proprietorships Answer: 75%
Some of Americas largest construction projects including the Hoover Dam in
Southern Nevada, built by Six companies, have been constructed by this
business ownership from where the assets and other resources of two or more
construction firms are combined for a specific project Answer: Joint Venture
A business ownership form that has the principal advantages of limited liability
of its owners, perpetual life of the company, relative ease of raising capital, the
easy and workable provision of multiple ownership and the economic benefit
that owners pay taxes only on profits (dividends) actually received is the ____
Answer: Corporation
In the partnership method of business ownership, a partner that is liable for
partnership debts only up to the amount of their investments in the partnership
would be termed a ___ Answer: Limited partner
The ____ is not an enduring form of business ownership. Rather the ___ is a
temporary form of ownership whereby two or more companies unite and pool
their resources, assets, and skills to perform a single construction project and
then go their separate ways again following completion Answer: Joint Venture
In a partnership, ____ exist when one party, called the principal, authorizes
another who is called the ___ to act for the former in certain types of defined
business or commercial transactions Answer: Agency, Agent
, 2
According to your textbook, in the settlement of the debts of a partnership, ___
enjoy a position of first priority Answer: Outside creditors
Concerning establishing a partnership, state laws regarding partnerships are not
entirely consistent, although most states have adopted the ___ more or less
verbatim Answer: Uniform Partnership Act
A stock palm that is a form of deferred compensation to those working fro the
corporation consisting of those working for the corporation investing in the
stock of their corporation, with these investments funded by tax-exempt
contributions. This stock plan termed a (an) ___ can be designed to accomplish
different purposes, including promoting a company growth by providing a new
source of equity capital, providing benefits for long term workers, allowing for
the retirement of company owners, accomplishing a change of company
ownership, and retiring stock presently owned by stockholders Answer:
Employee Stock Ownership plan (ESOP)
Concerning establishing a partnership, the contract between the partners is
termed the ___ Answer: Articles of Partnership
The primary disadvantage of the sole proprietorship form of business
organization is ___ Answer: Unlimited liability
The voting shareholders of a corporation elect a ___ that exercises general
control over the business of the incorporated company and determines the
overall policies of the corporation Answer: Board of Directors
The primary disadvantage of the corporate form of business organization
concerning corporation profit is ___ Answer: double taxation
According to your textbook, in a general partnership, each of the general
partners is a recognized member of the firm, is active in its management, and
has unlimited liability to its creditors. A ___ is one who contributes cash or
property to the business and the commensurately shares in the profits or losses
of enterprise. However, the ___ does not, and in fact cannot provide any
CEM 100 Exam 1 Questions with Answers
(100% Correct Answers)
Statutory entity that combines the limited personal liability feature of a
corporation and the partnership feature of taxation at the owner level is termed
a (an) Answer: LLC
Concerning business ownership for construction contracting firms in the US
approximately ____ are individual proprietorships Answer: 75%
Some of Americas largest construction projects including the Hoover Dam in
Southern Nevada, built by Six companies, have been constructed by this
business ownership from where the assets and other resources of two or more
construction firms are combined for a specific project Answer: Joint Venture
A business ownership form that has the principal advantages of limited liability
of its owners, perpetual life of the company, relative ease of raising capital, the
easy and workable provision of multiple ownership and the economic benefit
that owners pay taxes only on profits (dividends) actually received is the ____
Answer: Corporation
In the partnership method of business ownership, a partner that is liable for
partnership debts only up to the amount of their investments in the partnership
would be termed a ___ Answer: Limited partner
The ____ is not an enduring form of business ownership. Rather the ___ is a
temporary form of ownership whereby two or more companies unite and pool
their resources, assets, and skills to perform a single construction project and
then go their separate ways again following completion Answer: Joint Venture
In a partnership, ____ exist when one party, called the principal, authorizes
another who is called the ___ to act for the former in certain types of defined
business or commercial transactions Answer: Agency, Agent
, 2
According to your textbook, in the settlement of the debts of a partnership, ___
enjoy a position of first priority Answer: Outside creditors
Concerning establishing a partnership, state laws regarding partnerships are not
entirely consistent, although most states have adopted the ___ more or less
verbatim Answer: Uniform Partnership Act
A stock palm that is a form of deferred compensation to those working fro the
corporation consisting of those working for the corporation investing in the
stock of their corporation, with these investments funded by tax-exempt
contributions. This stock plan termed a (an) ___ can be designed to accomplish
different purposes, including promoting a company growth by providing a new
source of equity capital, providing benefits for long term workers, allowing for
the retirement of company owners, accomplishing a change of company
ownership, and retiring stock presently owned by stockholders Answer:
Employee Stock Ownership plan (ESOP)
Concerning establishing a partnership, the contract between the partners is
termed the ___ Answer: Articles of Partnership
The primary disadvantage of the sole proprietorship form of business
organization is ___ Answer: Unlimited liability
The voting shareholders of a corporation elect a ___ that exercises general
control over the business of the incorporated company and determines the
overall policies of the corporation Answer: Board of Directors
The primary disadvantage of the corporate form of business organization
concerning corporation profit is ___ Answer: double taxation
According to your textbook, in a general partnership, each of the general
partners is a recognized member of the firm, is active in its management, and
has unlimited liability to its creditors. A ___ is one who contributes cash or
property to the business and the commensurately shares in the profits or losses
of enterprise. However, the ___ does not, and in fact cannot provide any
