ETH 321 - DL Week 2 Practice Assignment Correctly Answered Questions| UpToDate | Already Graded A+

What is the definition of a foreign corporation? : A business formed in a different state What is the definition of a Subchapter S corporation? : A business that passes profits directly to shareholders Wade and Hunter want to start a business. They have a large amount of capital. They have a good working relationship and believe they will do well sharing management responsibility and in sharing profits. They are happy to be organizing a business together in order to avoid full liability for the business. Which detail(s) of this situation would be most unhelpful toward Wade and Hunter's decision to organize a general partnership? : Avoiding full liability Wade and Hunter's anticipation of limited liability would be a mistake if they are organizing a general partnership. Sharing management responsibility and profits are valid benefits of a general partnership, and while a large amount of capital is unnecessary in organizing one, it would certainly still be beneficial. 2 | P a g e What is a public corporation? : A business formed by the government What is a closely-held corporation? : A business with a small number of shareholders Albus wants to build a business. He wants to start the business fast and reach a large customer base, but he only has a small amount of opening capital. He has no partner with whom to form the business. Which of the following is not a valid reason for Albus to choose a sole proprietorship organization for his business? : Wants to reach a large customer base Which of the following is false concerning LLCs? : LLCs are formed in much the same way as a general partnership. The text states that LLCs are a creation of state statute. Bookmark question for later Tawny wants to be involved in a business. She