Unit 6 Review Question Preview (ID: 22863)


Unit 6 Review 1-10. TEACHERS: click here for quick copy question ID numbers.

The most numerous legal form of business organizations are
a) sole proprietorships
b) corporations
c) non-trading partnerships
d) trading partnerships

In a limited partnership
a) both of these
b) one partner must be a general partner with unlimited liability
c) limited partners can contribute capital and share profits and losses with general partners
d) none of these

The normal sequence of steps in ending a partnership is
a) dissolution, winding-up period, termination
b) bankruptcy, liquidation, distribution
c) termination, dissolution, distribution
d) none of these

Rights within a partnership requires
a) all of these
b) a unanimous agreement of all partners concerning any change in the written partnership
c) one vote for each partner regardless of the amount of capital contributed
d) that no action can be taken on a question in which an even number of partners are equally split

Unanimous agreement under the Uniform Partnership Act is required for decisions to
a) assign partnership property to creditors
b) buy inventory or equipment for the firm on credit
c) hire or fire a permanent, full-time employee
d) all of these

A partner who invests more capital, brings in more business, or works longer and harder than his or her associates is entitled to
a) no extra compensation unless all partners agree
b) a larger percentage of the business
c) a larger share of the profits
d) extra pay

Which type of business organization offers perpetual life as well as limited liability?
a) corporation
b) general partnership
c) sole proprietorship
d) unlimited partnership

Tess, Constance, and Jessica want to establish a partnership for their law firm expressed purpose to provide legal advice. Each partner has agreed to assume full personal responsibility for all debts. This is known as a
a) general partnership
b) special partnership
c) limited partnership
d) trading partnership

Which of the following statements regarding a corporation is untrue?
a) They can attract large sums of capital due to increased investor liability
b) its existence is distinct and separate from the person's who organize, own, and operate it
c) it attracts superior workers because it offers more generous salaries
d) none of these

A corporation doing business in one state but chartered in another state is called
a) a foreign corporation
b) an alien corporation
c) a domestic corporation
d) none of these

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