True or False Quiz

Please answer all questions.


1	Large partnerships are common in most states.
		A)	True
		B)	False


2	If you want to go into business for yourself, the easiest way is a corporation.
		A)	True
		B)	False


3	Common stockholders have a preemptive right.
		A)	True
		B)	False


4	A sole proprietor has unlimited sources of funds.
		A)	True
		B)	False


5	Domestic corporations do business in the state in which they are chartered.
		A)	True
		B)	False


6	When firms that make and sell similar products to the same customers merge, it is known as a vertical merger.
		A)	True
		B)	False


7	An acquisition occurs when one company buys another, generally by buying most of its stock.
		A)	True
		B)	False


8	A cooperative is an organization composed of small businesses that have banded together to reap the benefits of belonging to a larger organization.
		A)	True
		B)	False


9	The biggest disadvantage of the corporate form of ownership is the limited liability of its owners.
		A)	True
		B)	False


10	Partnerships are quasi-taxable organizations.
		A)	True
		B)	False


11	Partnerships have more regulatory controls than corporations.
		A)	True
		B)	False


12	Dividends are usually paid twice a year.
		A)	True
		B)	False


13	Cooperatives cannot engage in advertising.
		A)	True
		B)	False


14	Cooperatives are generally expected to operate without a profit.
		A)	True
		B)	False


15	A high degree of secrecy is an advantage of a sole proprietorship.
		A)	True
		B)	False


16	Sole proprietorships have the most freedom from government regulations.
		A)	True
		B)	False


17	Sole proprietorships typically employ more than 500 people
		A)	True
		B)	False


18	Corporations account for about 20 percent of U.S. sales.
		A)	True
		B)	False


19	In a limited partnership, all partners are equally liable.
		A)	True
		B)	False


20	In a general partnership, each partner is liable for all debts.
		A)	True
		B)	False

2002 McGraw-Hill Higher Education
Any use is subject to the Terms of Use and Privacy Policy.
McGraw-Hill Higher Education is one of the many fine businesses of The McGraw-Hill Companies.