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Answer Key 1. The corporation is the most common form of business ownership
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Answer Key 1. The corporation is the most common form of business ownership 05 Key 1. (p. 114) The corporation is the most common form of business ownership. AACSB: Reflective Thinking Blooms: Knowledge Learning Goal: 05-1 Level of Learning 1: Knowledge of key terms Nickels - Chapter 05 #1...

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  • 7 décembre 2021
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05 Key


1. (p. 114) The corporation is the most common form of business ownership.
FALSE


AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 05-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 05 #1
Topic: Basic Forms of Business Ownership



2. (p. 114) The three major forms of business ownership in the U.S. are sole proprietorships, partnerships, and
corporations.
TRUE


AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 05-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 05 #2
Topic: Basic Forms of Business Ownership



3. (p. 114) Few people today start their own business.
FALSE


AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 05-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 05 #3
Topic: Basic Forms of Business Ownership




1

,4. (p. 115) Once a business is established, it's almost impossible to change from one form of business ownership to
another.
FALSE


AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 05-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 05 #4
Topic: Basic Forms of Business Ownership



5. (p. 114) When two or more people legally agree to become co-owners of a business, the form of business is
called a partnership.
TRUE


AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 05-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 05 #5
Topic: Basic Forms of Business Ownership



6. (p. 114) A legal entity with authority to act and have liability separate from its owners is called a partnership.
FALSE


AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 05-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 05 #6
Topic: Basic Forms of Business Ownership



7. (p. 114) Corporations represent 20 percent of all the businesses in the U.S. and earn 81 percent of the total U.S.
business receipts.
TRUE


AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 05-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 05 #7
Topic: Basic Forms of Business Ownership




2

,8. (p. 114) A comparison of the three major forms of business ownership shows that sole proprietorships are
usually the most difficult type of business to establish.
FALSE


AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 05-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 05 #8
Topic: Basic Forms of Business Ownership



9. (p. 115) The first step in starting a sole proprietorship is to fill out a proprietorship charter application form and
file it with the state government.
FALSE


AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 05-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 05 #9
Topic: Sole Proprietorship



10. (p. 115) It is usually easy to start and end a sole proprietorship.
TRUE


AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 05-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 05 #10
Topic: Sole Proprietorship



11. (p. 115) The profits of a sole proprietorship are taxed as the personal income of the owner.
TRUE


AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 05-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 05 #11
Topic: Sole Proprietorship




3

, 12. (p. 115) The sole proprietorship form of ownership tends to be attractive to people who want to invest in a
company without taking an active role in management.
FALSE


AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 05-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 05 #12
Topic: Sole Proprietorship



13. (p. 115) A major advantage of sole proprietorships is that an owner has limited liability for the debts of his or
her business.
FALSE


AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 05-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 05 #13
Topic: Sole Proprietorship



14. (p. 115) One of the strengths of the sole proprietorship is its ability to sustain rapid growth by raising large
amounts of financial resources.
FALSE


AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 05-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 05 #14
Topic: Sole Proprietorship



15. (p. 116) The debts of a business operated as a sole proprietorship are considered to be the personal debts of the
owner of the business.
TRUE


AACSB: Reflective Thinking
Blooms: Knowledge
Learning Goal: 05-1
Level of Learning 1: Knowledge of key terms
Nickels - Chapter 05 #15
Topic: Sole Proprietorship




4

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