Bus 402 Wk 3 Quiz 2 Chapter 3,4

BUS 402 WK 3 Quiz 2 Chapter 3,4

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1) The key to choosing the "right" form of ownership is:

A) knowing the cost factor in time and money.

B) understanding how each form affects both business and personal circumstances.

C) having an experienced attorney and accountant to advise you in the choice.

D) the fact you cannot change the form of ownership once your company is established.

2) When choosing a form of ownership, the entrepreneur should realize that:

A) it is difficult if not impossible to change forms of ownership once the company is established.

B) the expense of changing forms of ownership makes it prohibitively expensive to change.

C) the most common form of ownership is the partnership and is the least expensive to establish.

D) he/she will most likely change the form of ownership as the company grows in size and revenues.

3) The most common form of business ownership is the:

A) sole proprietorship.

B) partnership.

C) corporation.

D) 0S-corporation.

4) Juan is starting a software writing company. He is the owner and has only 3 employees. He wants a simple inexpensive form of ownership that leaves him in control and that he can quickly dissolve if he decides to change to another business. His best choice of form of ownership would be:

A) S-corporation.

B) partnership.

C) corporation.

D) sole proprietorship.

5) Sole proprietorships characteristically are:

A) fairly complex to create.

B) subject to special legal restrictions.

C) expensive to create.

D) easy to discontinue.

6) The most critical disadvantage of the sole proprietorship is:

A) unlimited personal liability.

B) limited access to capital.

C) lack of continuity.

D) limited skills and capacities of the owner.

7) Which form of ownership generally has the least ability to accumulate capital?

A)...