Business and Personal Law

Chapter 16: Forms of Business

Online Practice Tests

1
The Articles of Partnership is known as the
A)general agreement.
B)registered liability agreement.
C)liability agreement.
D)partnership agreement.
2
Partnership property includes
A)all property belonging to the partnership and to the individual partners when the partnership was formed.
B)property contributed directly to the partnership when the partnership is created.
C)all property belonging to the partnership and one-half the property belonging to the individual partners.
D)property purchased prior to the creation of the partnership.
3
The biggest disadvantage of a sole proprietorship is
A)unlimited liability.
B)limited lifetime.
C)limited human resources.
D)limited capital.
4
A sole proprietorship is a
A)form of business whose profits are exempt from federal tax laws.
B)business which is exempt from zoning requirements.
C)form of business owned by one person.
D)business that does not require a license to operate.
5
The biggest disadvantage of a partnership is
A)unlimited liability shared among partners.
B)perpetual existence.
C)limited human resources.
D)limited capital.
6
A partnership in which each partner is not liable for the acts of the other partners is called a
A)UPA.
B)LLP.
C)LLC.
D)RULPA.
7
A corporation is considered foreign if it
A)operates as a private organization using public funds.
B)is incorporated in another country but does business in this country.
C)does business outside the state in which it was incorporated.
D)does business overseas.
8
A corporation is a(n)
A)organization that is exempt from government regulations.
B)large organization with more than 50 employees.
C)body formed and authorized by law to act as a single person.
D)partnership that has filed special papers.
9
The articles of incorporation
A)describes a corporation's organization, powers and authority.
B)are only required for public corporations.
C)allow a corporation to choose a name without the words "corporation, incorporated, or company."
D)are bylaws under which the corporation operates.
10
A limited liability company (LLC)
A)is run by people called the LLC members.
B)allows the owners to have limited liability and double taxation.
C)combines the best features of a sole proprietorship and a corporation.
D)combines the best features of a partnership and a corporation.
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