All of the following are methods that a sole proprietorship can raise money except
A) Private loans.
B) Commercial loans.
C) Sell ownership in the business.
D) Line of credit - Sell ownership in the business
Which of the following is true about a sole proprietorship?
A) It is subject to cor...
All of the following are methods that a sole proprietorship can raise money except
A) Private loans.
B) Commercial loans.
C) Sell ownership in the business.
D) Line of credit - Sell ownership in the business
Which of the following is true about a sole proprietorship?
A) It is subject to corporate income tax.
B) Sole proprietorships face double taxation.
C) The owner reports income and expenses on the owner's own tax return.
D) The owner must file a tax return on behalf of the business. - C) The owner reports
income and expenses on the owner's own tax return.
The person who is entitled to the profits of a business based on the percentage of
ownerships is
A) Executive
B) Manager
C) Board member
D) Principal - D) Principal
Reid Sterling owns a sole proprietorship called Dunkle Distributing. Dunkle Distributing
is a
A) Legal Name
B) Brand Name
C) Commercial Name
D) Trade Name - d. a trade name.
Which statement below is correct about a sole proprietorship?
A) It can have multiple owners.
B) It is created by filing bylaws.
C) It has low start-up costs and minimal filing.
D) It faces double taxation - C) It has low start-up costs and minimal filing
Gwendolyn Melvin wishes to start a children's sports store called, "Just Let 'Em Play!"
as
, a sole proprietor. What form must she file so that she can use another name than her
own?
A) Name Certificate
B) DBA Certificate
C) UCC-1 statement
D) Disclosure statement - B) DBA Certificate
Josh is a sole proprietor of an ice cream shop. Regina, a customer, slips and fall on
some
melted mint chocolate chip ice cream on the floor and breaks her leg. Regina files suit
and wins a
judgment of $50,000. Josh does not have any insurance and the total value of the
assets of the ice
cream shop is $10,000. Which statement below is correct?
A) Josh will not be required to pay anything because he does not have insurance.
B) Josh will have to pay $10,000 and then set up a payment plan to pay off the balance.
C) Josh will have to use his own personal assets to pay the remainder of the judgment.
D) Josh will only have to give Regina the money from the assets of the business,
$10,000. - C) Josh will have to use his own personal assets to pay the remainder of the
judgment.
Cyndy is a sole proprietor of a day care. She wishes to build a new playground and also
purchase new toys. She plans on doing this in stages and therefore wants a loan where
she can draw against a predetermined amount as she needs it rather than getting a
lump sum loan. Which type of loan would you recommend for Cyndy?
A) Collateral
B) Line of credit
C) Private loan
D) Commercial loan - b. line of credit
Raul wants a simple method to start-up a small marketing company. The marketing firm
has relatively low revenue and expenses. Which type of business entity would you
suggest?
A) Sole proprietorship
B) Franchise
C) Partnership
D) Corporation - A) Sole proprietorship
Stefan has opened a sole proprietorship bicycle shop. The business shows a net
income of
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller CleanA. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $13.49. You're not tied to anything after your purchase.
