ETH 321 - DL Week 2 Practice Problem Set Questions And 100% Correct Answers.
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Course
ETH 321
Institution
ETH 321
What is the definition of a foreign corporation? - Answer A business formed in a different state
What is the definition of a Subchapter S corporation? - Answer A business that passes profits directly to shareholders
Wade and Hunter want to start a business. They have a large amount of c...
ETH 321 - DL Week 2 Practice Problem
Set Questions And 100% Correct
Answers.
What is the definition of a foreign corporation? - Answer A business formed in a different state
What is the definition of a Subchapter S corporation? - Answer A business that passes profits directly to
shareholders
Wade and Hunter want to start a business. They have a large amount of capital. They have a good
working relationship and believe they will do well sharing management responsibility and in sharing
profits. They are happy to be organizing a business together in order to avoid full liability for the
business. Which detail(s) of this situation would be most unhelpful toward Wade and Hunter's decision
to organize a general partnership? - Answer Avoiding full liability
Wade and Hunter's anticipation of limited liability would be a mistake if they are organizing a general
partnership. Sharing management responsibility and profits are valid benefits of a general partnership,
and while a large amount of capital is unnecessary in organizing one, it would certainly still be beneficial.
What is a public corporation? - Answer A business formed by the government
What is a closely-held corporation? - Answer A business with a small number of shareholders
Albus wants to build a business. He wants to start the business fast and reach a large customer base, but
he only has a small amount of opening capital. He has no partner with whom to form the business.
Which of the following is not a valid reason for Albus to choose a sole proprietorship organization for his
business? - Answer Wants to reach a large customer base
Which of the following is false concerning LLCs? - Answer LLCs are formed in much the same way as a
general partnership.
The text states that LLCs are a creation of state statute.
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