Question

A corporation receives its charter from ________.

Select one:

a. the federal government

b. the state

c. the board of directors

d. the stockholders

In a general partnership, ________.

Select one:

a. each partner is held responsible for an agreement/decision made by any one of the partners

b. partners can be held responsible only for decisions they make personally

c. no partner can be held legally responsible for decisions since the partnership itself is a legal entity

d. no decision is binding unless all partners agree to it in writing

An S corporation form of ownership overcomes which disadvantage of the regular or C corporation form of ownership?

Select one:

a. The double taxation issue.

b. The expense and difficulty of formation.

c. The amount of regulation and red tape involved in its operation.

d. The potential loss of control by the founder.

Financing the purchase of an existing business usually is easier than financing the startup of a new one.

Select one:

a. True

b. False

Answer 1

Here are the correct options. Pl free to comment in case of any doubt.

D) the state

a. each partner is held responsible for an agreement/decision made by any one of the partners

a. The double taxation issue.

a. True