To determine if a business is a good investment you must determine two factors that we discussed in class. One of these is: - ANSWERSThe level of profitability of the business
In a partnership, what happens to the company upon the death of one of the partners? - ANSWERSThe partnership terminates...
To determine if a business is a good investment you must determine two factors that we
discussed in class. One of these is: - ANSWERSThe level of profitability of the business
In a partnership, what happens to the company upon the death of one of the partners? -
ANSWERSThe partnership terminates
When planning a business one may choose a form of ownership in which the business
is owned and operated by one person. This is called a: - ANSWERSProprietorship
Relatively permanent assets that are kept on hand for the use of the business rather
than for resale are referred to as: - ANSWERSFixed Assets
Goods that are kept on hand for resale are referred to as: - ANSWERSInventory
Liabilities that must be repaid within 12 months are referred to as: - ANSWERSCurrent
debt
Credit that has been extended to your business is sometimes referred to as: -
ANSWERSTrade Credit
The Charter for a corporation is obtained from: - ANSWERSThe Secretary of State in
the state where the corporation is located
The type of stock that many corporations issue which can be treated as a tax-
deductable loss if the stock becomes worthless is referred to as: - ANSWERSvaluless
stock?
A typical, common stockholder for a corporation - ANSWERSHas the right to receive
declared dividends
Which of the following forms of legal ownership allows the owners to contribute NO
capital to the business but still play a role in the managing the business and sharing the
profits? - ANSWERSPartnership
A major advantage of organizing a business under Subchapter S of the Internal
Revenue Code is that it: - ANSWERSEliminates double-taxation for the owners
The method of valuation of a business that considers the income potential of the
company over the next year is called the - ANSWERSEarnings-Based Approach
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