Which of the following is a disadvantage of partnership but not of sole proprietorship?

Asked by fgado9449 on coursehero.com

Fill in the Blank Spaces

1. One of the benefits of being a sole proprietorship is ....................., which is evidenced by a sole proprietor being completely free to make decisions about the firm's operations, location, expansion plans, business hours, and other details.
2. Under the United States Uniform Partnership Act a partnership is defined as.................
3. According to the textbook, a partnership usually has more capital available than a sole proprietorship because partners can pool their funds. This additional capital, in addition to the general partners' unlimited liability and partners working together in management skills, may encourage ........... to extend more credit or approve larger loans to a partnership than to a sole proprietor.
4. The primary difference between a limited-liability partnership (LLP) and limited partnership is.............
5. Partnerships operate as both an entity and as a collection of individuals. When it comes to taxes, partnerships are a (an) ......................................... and ...............................................
6. The owner of a corporation is known as the ...........................................
7. Corporate limited liability means corporate losses are limited to.......................................
8. A not-for-profit corporation is .........................................

                     Choose the correct to the following questions

1. Partnerships have both advantages and disadvantages, which of the following was not a disadvantage or advantage addressed by the authors?

a. Share in profits equally or according to the agreement, if any, but unlimited liability      

b. Combined business skills provide the ability to discuss important issues, but management disagreements can build distrust or make the business impossible to operate     

c. Ease of start-up, but lack of continuity because the partnership terminates if one of the general partners dies        

d. Retention of profits, but when the partnership retains profits, the partners are still taxed on this money

1. A corporation is an artificial person created by law, with most of the legal rights of a real person. Which of the following is not a legal right held by a corporation?

a. The right to start and operate a different business       

b. The right to total privacy          

c. The right to go into debt           

d. The right to buy or sell real or personal property

1. Many parties take part in the operation of a corporation. Which of the following describes the duties of corporate officers?

a. They set the company goals and develop general plans for meeting these goals.             

b. They own the company and vote for the board of directors.     

c. They help make plans, carry out strategies, hire employees, and managed day-to-day business activities.                

d. They are the conduit through which the corporation acts and, as such, are its top governing body.         

1. There are many advantages to conducting business as a corporation. Which of the following is not an advantage of conducting business as a corporation?

                a. Perpetual life 

                b. Ease of transfer of ownership 

                c. Management with specialized skill-sets              

                d. Pressure to improve

1. Many parties take part in the operation of a corporation. Which of the following describes the duties of corporate officers?

a. They set the company goals and develop general plans for meeting these goals.             

b. They own the company and vote for the board of directors.     

c. They help make plans, carry out strategies, hire employees, and managed day-to-day business activities.                

d. They are the conduit through which the corporation acts and, as such, are its top governing body.         

1. There are many disadvantages to creating a corporation and conducting business as a corporation. One of the disadvantages is double taxation. Which of the following best describes what is meant by double taxation?

a. Taxation on profits when they are earned and when the corporation retains the profits for specified projects and does not distribute them as dividends to shareholders          

b. Taxation when stock increases in value and then again when the stock is sold  

c. Taxation on profits when they are earned and taxation again as personal income of stockholders           

d. Taxation on dividends when they are declared by the corporation and when they are received by stockholders      

1. A corporation can elect to change its tax status to an S corporation. Which of the following is an advantage of electing S corporation status?

a. Income shifting is eliminated as profits and losses pass directly to stockholders through the business and are reported on the owners' personal income tax returns.     

b. Losses are passed directly to stockholders through the business and are reported on the owners' personal income tax returns.         

c. Double taxation is eliminated as profits and losses pass directly to stockholders through the business and are reported on the owners' personal income tax returns.             

d. Profits are passed directly to stockholders through the business and are reported on the owners' personal income tax returns.

1. Corporations can grow in a variety of ways, which of the following is not a way corporations grow?

a. Corporations grow by expanding their present operations.       

b. Corporations grow by merging with other firms.            

c. Corporations grow by creating more corporations.       

d. Corporations grow by acquiring other corporations

Answered by MasterBella4069 on Course Hero

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