LSB 3213 John Holden Oklahoma State Exam 3 Questions And Answers Latest Updates
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LSB 3213 John Holden Oklahoma State
Institution
LSB 3213 John Holden Oklahoma State
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 ...
LSB 3213 John Holden Oklahoma State
Exam 3
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
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.
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
$100,000. Stefan took a salary of $40,000. The remaining money is left in the bank.
A) At tax time, the business pays taxes on $100,000, and Stefan pays taxes on
$40,000.
B) At tax time, the business pays taxes on $140,000.
C) At tax time, the business pays taxes on $70,000, and Stefan pays taxes on $70,000.
D) At tax time, Stefan pays taxes on $140,000. - ✔️✔️D) At tax time, Stefan pays taxes
on $140,000
A limited partnership requires
A) at least two general partners.
B) at least two limited partners.
C) a written limited partnership agreement.
D) at least one general and one limited partner. - ✔️✔️D) at least one general and one
limited partner
Limited partnerships are required to file a(n) __________ return with the IRS each year.
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