It was called to my attention that the multiple choice questions in the book for Chapter 9 are the wrong ones...so, here are the correct ones. I am sorry, I forgot to correct this. 1. Which of the following is true about a limited liability company A) it is the oldest form of business entity B) it is the simplest form of business entity to create C) it requires no formalities to create it D) it can last forever E) a, b and c 2. Which of the following is/are taxed like a partnership even thought that entity is not a partnership? A) Limited Liability Company B) S Corporation C) Closely Held Corporation D) Limited Partnership E) a and b 3. If your primary objective is to give all the owner(s) limited liability, your choice for a type of business entity should be a: A) sole-proprietorship B) partnership C) corporation D) limited partnership E) any of the above give the owner(s) limited liability 4. How many different classes of partners must a limited partnership have to be legal? A) one B) two C) three D) four E) five 5. Which of the following are true about a sole-proprietorship? A) it is the oldest form of business entity B) it is the simplest form of business entity C) there are no formalities to creating it D) it can last forever E) a, b and c 6. Which of the following is true about limited liability companies? A) they give all of their owners limited liability B) they are much easier to operate than the corporate form C) they have flexibility in taxation D) they have flexibility in management E) all of the above 7. Which business entity was created in Texas in 1991? A) LP B) LLP C) LLLP D) S corporations E) PC 8. What is the birth certificate of the LLC? A) Articles of Organization B) Articles of Incorporation C) Certificate of Organization D) Certificate of Incorporation E) Corporate Charter 9. Where did LLCs begin? A) Japan B) China C) Germany D) England E) France 10. Who elects the board of directors in a corporation? A) owners B) officers C) managers D) shareholders E) a and d 11. What must be included in the filing that is necessary to create a LLC? A) name of the LLC B) the purpose of the LLC C) name and address of each incorporator D) a and b E) a, b and c 12. Which of the following types of businesses entities have/has a limited on the type of owners they can have? A) limited liability company B) partnership C) S corproation D) professional corporation E) c and d 13. Which of the following is true about a partnership? A) it is the oldest form of business entity B) it is the simplest form of business entity C) there are no formalities to forming it D) it can last forever E) a, b and c 14. If you are creating a partnership which of the following items MUST be in the partnership agreement? A) relation of the partners to each other B) responsibilities of the parnters C) duration of the partnership D) how are the profits going to be split E) none of the above 15. Which type(s) of businesses cannot be a LLC? A) banks that are insured by the FDIC B) insurance companies C) car dealerships D) resturarants E) a and b 16. What was the first state to have LLCs in the United States? A) Neveda B) Arkansas C) Kansas D) Wyoming E) Montana 17. If your primary objective is to be able to raise capital from the public, which form of business entity is the correct choice? A) sole-proprietorship B) partnership C) corporation D) limited partnership E) limited liability company 18. If you want to create a separate legal entity, which form(s) of businesses entities do so? A) sole-proprietorship B) partnership C) corporation D) limited liability company E) c and d 19. What profession first used LLPs in large numbers? A) attorneys B) accountants C) bankers D) dentists E) doctors 20. Which of the following is true about a corporation? A) it is the oldest form of business entity B) it is the simplest form of business entity C) there are no special requirements to create it D) it can last forever E) a, b and c Answer Key 1. D 2. E 3. C 4. B 5. E 6. E 7. B 8. C 9. C 10. E 11. D 12. E 13. C 14. E 15. E 16. D 17. C 18. E 19. B 20. D
Posted on: Tue, 01 Apr 2014 21:02:57 +0000
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