Business Structure MCQs

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Which of the following statements is not true of a sole proprietorship?






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A general partnership must






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Which of the following can be a partnership?






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A silent partner in a general partnership






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Lark, a partner in DSJ, a general partnership, wishes to withdraw from the partnership and sell Lark’s interest to Ward. All of the other partners...






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A partnership agreement must be in writing if






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Sydney, Bailey, and Calle form a partnership under the Revised Uniform Partnership Act. During the first year of operation, the partners have fundam...






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Which of the following is not true of a general partnership?






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The partnership agreement for Owen Associates, a general partnership, provided that profits be paid to the partners in the ratio of their financial ...






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Cobb, Inc., a partner in TLC Partnership, assigns its partnership interest to Bean, who is not made a partner. After the assignment, Bean asserts th...






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The apparent authority of a partner to bind the partnership in dealing with third parties






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In a general partnership, which of the following acts must be approved by all the partners?






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Under the Revised Uniform Partnership Act, partners have joint and several liability for






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Which of the following actions require(s) unanimous consent of the partners under partnership law? I. Making partnership a surety. II. Admission of...






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Which of the following statements best describes the effect of the assignment of an interest in a general partnership?






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Under the Revised Uniform Partnership Act, in which of the following cases will property be deemed to be partnership property? I. A partner acquires...






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Wind, who has been a partner in the PLW general partnership for four years, decides to withdraw from the partnership despite a written partnership a...






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Which of the following statements is correct with respect to a limited partnership?






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Sharif, Hirsch, and Wolff formed a limited partnership with Sharif and Hirsch as general partners. Wolff was the limited partner. They failed to agr...






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Which of the following is (are) true of a limited partnership? I. Limited partnerships must have at least one general partner. II. The death of a li...






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Alchorn, Black, and Chan formed a limited partnership with Chan becoming the only limited partner. Capital contributions from these partners were $2...






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To create a limited partnership, a certificate of limited partnership must be filed with the Secretary of State. Which of the following must be incl...






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Mandy is a limited partner in a limited partnership in which Strasburg and Hua are the general partners. Which of the following may Mandy do without...






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In a limited partnership, the limited partners’ capital contribution may be in which of the following forms?






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Hart and Grant formed Hart Limited Partnership. Hart put in a capital contribution of $20,000 and became a general partner. Grant put in a capital c...






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The admission of a new general partner to a limited partnership requires approval by I. A majority of the general partners. II. All of the general ...






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The admission of a new limited partner to a limited partnership requires approval by I. A majority of the general partners. II. All of the general ...






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Riewerts, Morgar and Stonk form a limited partnership. Riewerts is the one general partner. Which of the following events will cause this limited pa...






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Which of the following is not true of a joint venture?






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Which form(s) of a business organization can have characteristics common to both the corporation and the general partnership? Limited liability comp...






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Which of the following is true of a limited liability company under the laws of the majority of states?






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Which of the following is not characteristic of the typical limited liability company?






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Owners and managers of a limited liability company (LLC) owe






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Which of the following is true of the typical limited liability company?






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In which of the following respects do general partnerships and limited liability partnerships differ? I. In the level of liability of the partners f...






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Under the federal Subchapter S Revision Act, all corporations are designated as






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Under the federal Subchapter S Revision Act all corporations are






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Which of the following statements is (are) true?






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The main difference between Subchapter S corporations and Subchapter C corporations is






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Which of the following statements best describes an advantage of the corporate form of doing business?






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Which of the following is not considered to be an advantage of the corporate form of doing business over the partnership form?






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Which of the following is not a characteristic of a corporation?






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A corporation as a separate legal entity can do which of the following?






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Which of the following are characteristics of the corporate form of doing business?






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Which of the following is a disadvantage of a Subchapter C corporation?






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Bond Company is incorporated in Florida but not in Georgia. Bond has branch offices in both states. Which of the following is correct? I. Bond is a...






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Colby formed a professional corporation along with two other attorneys. They took out loans in the name of the corporation. During the first year, C...






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Macro Corporation was incorporated and doing business in Illinois. It is doing business in various other states including Nevada. Which of the follo...






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Cleanit Corporation was incorporated in Colorado. Cleanit wishes to perform some transactions in other states but does not want to incorporate or ob...






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Which of the following statements is true of professional corporations under the various state laws? I. The professionals in the corporation have pe...






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Which of the following statements is correct with respect to the differences and similarities between a corporation and a limited partnership?






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Under the Revised Model Business Corporation Act, which of the following must be contained in a corporation’s Articles of Incorporation?






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Absent a specific provision in its Articles of Incorporation, a corporation’s board of directors has the power to do all of the following, except ...






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Which of the following statements is correct concerning the similarities between a limited partnership and a corporation?






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Promoters of a corporation which is not yet in existence






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Johns owns 400 shares of Abco Corp. cumulative preferred stock. In the absence of any specific contrary provisions in Abco’s Articles of Incorpora...






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Gallagher Corporation issued 100,000 shares of $40 par value stock for $50 per share to various investors. Subsequently, Gallagher purchased back 10...






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An owner of common stock will not have any liability beyond actual investment if the owner






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All of the following distributions to stockholders are considered asset or capital distributions, except






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Which of the following constitute(s) valid consideration or value to purchase shares of stock?






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Brawn subscribed to 1,000 shares of $1 par value stock of Caldo Corporation at the agreed amount of $20 per share. She paid $5,000 on April 1 and th...






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Pearl Corporation has some treasury stock on hand. Which of the following is (are) true?






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Treasury stock of a corporation is stock that






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By law, a corporation






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Mesa Corporation is planning on issuing some debt securities. Which of the following statements is true?






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Stock of a corporation is called watered stock when the cash or property exchanged to acquire the stock is






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Corporations generally have which of the following powers without shareholder approval? I. Power to acquire their own shares. II. Power to make cha...






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Murphy is an employee of Landtry Corporation. Which of the following acts would make the corporation liable for Murphy’s actions? I. Murphy decei...






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Which of the following statements is (are) true? I. Corporations can be found liable for crimes. II. Directors can face prison sentences for crimes ...






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Norwood was a promoter of Parker Corporation. On March 15, Norwood purchased some real estate from Burrows in Parker’s name and signed the contrac...






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Under the Revised Model Business Corporation Act, which of the following statements is correct regarding corporate officers of a public corporation?...






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The officers of West Corporation wish to buy some used equipment for West Corporation. The used equipment is actually owned by Parks, a director of ...






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The following are two statements concerning a fiduciary duty in a corporation. I. Officers and directors of a corporation owe a fiduciary duty to t...






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Hogan is a director of a large corporation. Hogan owns a piece of land that the corporation wishes to purchase and Hogan desires to sell this land a...






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Which of the following is not a power of the board of directors?






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Which of the following statements is (are) true under the law affecting corporations? I. A corporation may indemnify directors against lawsuits bas...






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Which of the following is (are) true concerning corporations?






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McGarry is an officer of Norton Corporation. McGarry has committed a tort while acting for Norton Corporation within the scope of her authority. Whi...






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Acorn Corp. wants to acquire the entire business of Trend Corp. Which of the following methods of business combination will best satisfy Acorn’s o...






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Price owns 2,000 shares of Universal Corp.’s $10 cumulative preferred stock. During its first year of operations, cash dividends of $5 per share w...






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Under the Revised Model Business Corporation Act, which of the following actions by a corporation would entitle a stockholder to dissent from the ac...






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To which of the following rights is a stockholder of a public corporation entitled?






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Which of the following is correct pertaining to the rights of stockholders in a corporation?






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The limited liability of a stockholder in a closely held corporation may be challenged successfully if the stockholder






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The corporate veil is most likely to be pierced and the shareholders held personally liable if






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Which of the following is correct about the law of corporations?






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A parent corporation owned more than 90% of each class of the outstanding stock issued by a subsidiary corporation and decided to merge that subsidi...






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Under the Revised Model Business Corporation Act, a merger of two public corporations usually requires all of the following except






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Which of the following statements is a general requirement for the merger of two corporations?






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Which of the following must take place for a corporation to be voluntarily dissolved?






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A corporate stockholder is entitled to which of the following rights?






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When a consolidation takes place under the law of corporations, which of the following is true?






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When a corporation elects to be a Subchapter S corporation, which of the following statements is (are) true regarding the federal tax treatment of t...






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Mead, CPA, had substantial doubt about Tech Co.’s ability to continue as a going concern when reporting on Tech’s audited financial statements f...






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When an auditor concludes there is substantial doubt about a continuing audit client’s ability to continue as a going concern for a reasonable per...






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In terms of business volume, the dominant form of business organization is the: