Question 1

In a partnership,
partners are not liable for debts of other partners if there is no partnership agreement.
each partner pays only his or her share of the liability even if one partner runs out of money before that partner's share is paid.
a partner is not responsible for debts if another partner created the liability through some action that violated the partnership agreement.
each partner is responsible for the debts even if the debt was the result of the actions of only one partner.
each partner is responsible only for the debts he or she incurred.

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partners are not liable for...

Question 2

________ is defined as "an artificial being, invisible, intangible, and existing only in contemplation of the law."
A corporation
A co-operative
A partnership
A business owner
A sole proprietorship

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The answer of ________ is defined as "an artificial being,...

Question 3

________ is the governing body of a corporation.
The board of directors
The majority shareholders committee
The audit committee
The CEO
A shareholders board

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Question 4

Disadvantages of the general partnership form of business organization include
limited liability.
ability to provide dividends to shareholders.
lack of continuity.
simplicity of establishment.
difficult to organize.

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The answer of Disadvantages of the general partnership form of...

Question 5

What is the fundamental difference between a sole proprietorship and a corporation?
A corporation is larger than a sole proprietorship.
A corporation is a legal entity that is separate from its owners, while in a sole proprietorship, there is no such distinction.
A sole proprietor has unlimited liability, while investors in a corporation have limited liability.
A corporation is more bureaucratic than a sole proprietorship.
There isn't really a fundamental difference between a sole proprietorship and a corporation.

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Question 6

Computers-B-Us is a new company. Its owners all have no personal liability for any debts of the company. All five of its owners invested the same amount and will share equally in the profits. The structure of Computers-B-Us is most likely a
private corporation.
co-operative.
limited partnership.
general partnership.
sole proprietorship.

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The answer of Computers-B-Us is a new company. Its owners...

Question 7

Shareholders are ________ of a company and profits are distributed among shareholders in the form of ________.
owners; proxies
owners; products
managers; proxies
owners; dividends
managers; profit sharing

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The answer of Shareholders are ________ of a company and...

Question 8

What is the difference between a public and private corporation?
Public corporations issue shares, whereas private corporations do not.
Public corporations are owned by a government, whereas private corporations are owned by private individuals.
Public corporations are always large, whereas private corporations are not allowed by law to be large.
Public corporations have articles of incorporation, whereas private corporations do not.
Public corporations issue shares that are widely held, whereas private corporations issue shares that are held by only a few people.

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The answer of What is the difference between a public...

Question 9

Two architects are considering forming a partnership. Both want a partnership agreement. All of the following should be part of their agreement except
the formal reporting relationship between the two partners.
the amount of the individual investment.
how the company will be dissolved.
how the profits will be shared.
how new employees will be hired.

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The answer of Two architects are considering forming a partnership....

Question 10

Start-up costs and complexities are among the main disadvantages of
starting up a partnership.
incorporating.
starting up a sole proprietorship.
selling shares.
none of these.

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Question 11

A share of ownership in a corporation is referred to as
a partnership.
stock.
a principle.
a directorship.
debt.

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Question 12

For the first time, Liz has decided to sell shares of her company to the public in order to raise some capital to build a new factory. Liz is launching a(n)
initial public offering.
an extended corporation.
blended corporation.
private corporation.
income tax trust.

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Question 13

An outside director is
a person who is not an employee of the company.
a person from the employee group outside the upper level ranks.
a person selected by the CEO.
a person who is a high ranking company official.
a person from the audit committee.

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a person who is...

Question 14

Which of the following is a private corporation?
General Motors Canada
Suncor Energy
Cirque du Soleil
Manulife Financial Corp.
Bank of Nova Scotia

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The answer of Which of the following is a private...

Question 15

An organization designed to avoid paying corporate tax by distributing all or most of their earnings to their shareholders is
an income trust.
a shareholders co-operative.
a public company.
a limited partnership.
a private corporation.

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The answer of An organization designed to avoid paying corporate...

Question 16

What was the largest corporation in Canada in 2012, as measured by sales revenue?
Imperial Oil
Manulife Financial Corp.
Bank of Nova Scotia
General Motors Canada
Suncor Energy

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The answer of What was the largest corporation in Canada...

Question 17

The two most widely used methods to form a corporation include
traditional or contemporary incorporation.
limited or unlimited incorporation.
private or public incorporation.
inside or outside incorporation.
federal or provincial incorporation.

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Question 18

Bill is starting up a new business. In order to raise the capital needed for the business, Bill has sold shares of his company to a few close relatives. This type of structure is known as a
sole proprietorship.
private corporation.
macroenterprise.
public enterprise.
public corporation.

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The answer of Bill is starting up a new business....

Question 19

A public corporation is
one that must do business with the general public.
chartered by the federal government.
one whose stock is available for sale to the general public.
one that cannot keep secrets from its competitors.
one whose shares are for sale at public auctions.

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The answer of A public corporation is
one that must do...

Question 20

Ann and David want to form a partnership. They should consider all of the following except
possibility of disagreement.
unlimited liability.
ease of setting up a partnership.
the combined talents of both partners.
ease in transferring ownership.

Accepted Answer

The answer of Ann and David want to form a...

Quiz 4: Entrepreneurship, Small Business, and New Venture Creation

________ is defined as "an artificial being, invisible, intangible, and existing only in contemplation of the law." A corporation A co-operative A partnership A business owner A sole proprietorship

________ is the governing body of a corporation. The board of directors The majority shareholders committee The audit committee The CEO A shareholders board

Disadvantages of the general partnership form of business organization include limited liability. ability to provide dividends to shareholders. lack of continuity. simplicity of establishment. difficult to organize.

Shareholders are of a company and profits are distributed among shareholders in the form of . owners; proxies owners; products managers; proxies owners; dividends managers; profit sharing

Start-up costs and complexities are among the main disadvantages of starting up a partnership. incorporating. starting up a sole proprietorship. selling shares. none of these.

A share of ownership in a corporation is referred to as a partnership. stock. a principle. a directorship. debt.

For the first time, Liz has decided to sell shares of her company to the public in order to raise some capital to build a new factory. Liz is launching a(n) initial public offering. an extended corporation. blended corporation. private corporation. income tax trust.

An outside director is a person who is not an employee of the company. a person from the employee group outside the upper level ranks. a person selected by the CEO. a person who is a high ranking company official. a person from the audit committee.

Which of the following is a private corporation? General Motors Canada Suncor Energy Cirque du Soleil Manulife Financial Corp. Bank of Nova Scotia

An organization designed to avoid paying corporate tax by distributing all or most of their earnings to their shareholders is an income trust. a shareholders co-operative. a public company. a limited partnership. a private corporation.

What was the largest corporation in Canada in 2012, as measured by sales revenue? Imperial Oil Manulife Financial Corp. Bank of Nova Scotia General Motors Canada Suncor Energy

The two most widely used methods to form a corporation include traditional or contemporary incorporation. limited or unlimited incorporation. private or public incorporation. inside or outside incorporation. federal or provincial incorporation.

Bill is starting up a new business. In order to raise the capital needed for the business, Bill has sold shares of his company to a few close relatives. This type of structure is known as a sole proprietorship. private corporation. macroenterprise. public enterprise. public corporation.

A public corporation is one that must do business with the general public. chartered by the federal government. one whose stock is available for sale to the general public. one that cannot keep secrets from its competitors. one whose shares are for sale at public auctions.

Ann and David want to form a partnership. They should consider all of the following except possibility of disagreement. unlimited liability. ease of setting up a partnership. the combined talents of both partners. ease in transferring ownership.