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Acct 504 Study Questions

In: Business and Management

Submitted By andychin427
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8/4/13

Chapter 1 Results

36% (9 out of 25 correct)

Responses to questions are indicated by the

symbol.

1. Corporations generally receive more favorable tax treatment than sole proprietorships and corporations. A. True B. False

Correct! Sole proprietorships and partnerships generally receive more favorable tax treatment than corporations.

2. Which is not one of the three forms of business organization? A. Sole proprietorship B. Creditorship C. Partnership D. Corporation

This is one of three forms of business organization discussed in the chapter.

3. Which is an advantage of corporations relative to partnerships and sole proprietorships? A. Increased difficulty of raising funds B. Harder to transfer ownership C. Reduced legal liability for investors D. Most common form of organization

Ownership is easier to transfer in a corporation than in a partnership or proprietorship.

4. Easy transfer of ownership is a characteristic of which form of business organization? A. Sole proprietorship B. Partnership C. Corporation higheredbcs.wiley.com/legacy/college/kimmel/1118162285/self_test/ch01.html?newwindow=true 1/8

8/4/13

Chapter 1 Results

D. All of the answer choices are correct

Partnerships are effectively dissolved when any portion of the partnership is sold, closed, boughtout by the other partners, or bought by a new partner or partners.

5. In which forms of business organization are the owners personally liable for all the debts of the business? A. Sole proprietorships and corporations B. Sole proprietorships and partnerships C. Partnership and corporation D. All of the answer choices are correct

Correct! Owners are personally liable for all debts of the business in both sole proprietorships and partnerships.

6. The sole proprietorship form of business organization A. must have at least two owners in most states. B.…...

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