AGBE 3430 Exam 2 Questions & Answers 2024/2025
The form of business organization in the US that generated the greatest amount in business receipts in 2006 was the
A. Single proprietorships
B. Partnership
C. Corporation
D. Cooperative - ANSWERSCorporation
A disadvantage of a partnership ...
The form of business organization in the US that generated the greatest amount in business receipts in
2006 was the
A. Single proprietorships
B. Partnership
C. Corporation
D. Cooperative - ANSWERSCorporation
A disadvantage of a partnership is:
A. Unlimited liability of each general partner
B. It is about as easy to start as a proprietorship
C. Partners, as individuals, pay income taxes only on the income generated from their share of the profit
D. None of the above - ANSWERSUnlimited liability of each partner
A ________ partner is an individual who cannot take an active role in management, but is known to be a
partner by the general public.
A. Dormant
B. Secret
C. Silent
D. Nominal - ANSWERSSilent
The legal document of a corporation that specifies such rules of operation as the election of directors,
duties of officers and directors, voting procedures, and dissolution procedures is called
A. Bylaws
B. Articles of incorporation
C. Resolution to borrow
, D. None of the above - ANSWERSBylaws
Qualification(s) that must be met to form an S-corporation include:
A. Cannot be more than 100 stockholders
B. Stockholders must be individual persons rather than corporations
C. The election to be taxed as individuals may occur any time during the fiscal year, but prior to filing
income taxes each year
domestic corporation
D. Both a & b - ANSWERSBoth A & B
A disadvantage of forming a corporation is that:
A. Stockholders are not personally liable for the debts of the corporation
B. Double taxation
C. Perpetual life
D. All of the above - ANSWERSDouble taxation
An example of a partner that would not be active in management and would not be known to the public
would be:
A. Secret
B. Silent
C. Dormant
D. Nominal - ANSWERSDormant
Advantage(s) of a proprietorship form of organization is (are):
A. Minimal legal requirements needed to start
B. Owner has complete control over the business
C. Pays no income tax as a separate business entity
D. All of the above - ANSWERSAll of the above
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