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Types of Business Organizations: Tutoring Solution Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. A partnership agreement is:

Question 2 2. Xavier owns 50 shares of XYZ Corporation stock. The corporation made a $500,000 profit this year and decided to distribute profits. It will allocate profits at a rate of $2 per share. How much will Xavier receive?

Question 3 3. Jerry and Jenny are partners in a real estate investment group. Jerry invests $500,000 of his own money to acquire properties. Jenny is in charge of making the real estate transactions. However, Jerry makes a transaction on behalf of the group. Jerry's transaction is a bad deal and results in the group owing $800,000. Jerry can be held personally liable for:

Question 4 4. Christy is buying stock. Why might she want preferred stock over common stock?

Question 5 5. Patty is the CEO of Party Portraits, Inc. This means Patty is:

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Question 6 6. Jerry and Jenny are partners in a real estate investment group. Jerry invests $500,000 of his own money to acquire properties. Jenny handles the real estate transactions. Jenny makes some bad deals and now the group owes $800,000 in delinquent mortgage payments. Jenny can be held personally liable for:

Question 7 7. The second step in ending a partnership is known as:

Question 8 8. Which of the following is NOT an aspect of a general partnership?

Question 9 9. Partnerships are a popular type of business because:

Question 10 10. Yoho Motors files for bankruptcy. The company's creditors then seek payment from the corporation and the shareholders. Why will the creditors NOT be able to recover their debts from the shareholders?

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Question 11 11. Paul owns stock in Party Portraits, Inc. This means Paul is:

Question 12 12. Jerry and Jenny are partners in a real estate investment group. Jerry invests $500,000 of his own money to acquire properties. Jenny handles the real estate transactions. Jerry is a:

Question 13 13. When a corporation wishes to initiate a voluntary termination of the corporation, who must first vote on the matter?

Question 14 14. Catherine and Carl have a car washing business. They are general partners. When washing Collin's car, Carl accidentally causes severe water damage to the car's interior. Catherine wasn't there when it happened, and isn't in charge of washing the cars. Who can be held liable for the damage to Collin's car?

Question 15 15. Hannah, Liz, and Stacey started an online jewelry business called The Triple Bedazzle company. Although they felt they did their research, the business did not take off due to intense competition from more experienced online jewelry boutiques. The three women felt they had no choice but to close the shop. At the time of the closing, they owed their creditors $25,000 for which they were being sued. How much money can the creditors seek in payment from either The Triple Bedazzle, the three women, or both?

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Question 16 16. Which of the following is NOT an aspect of a limited partnership?

Question 17 17. A corporation's owners are known as _____.

Question 18 18. A corporation can only be terminated through:

Question 19 19. Which of the following attributes is common to all types of business partnerships?

Question 20 20. Jack and Jill form a partnership. Jack becomes disabled and is no longer able to participate in the partnership. He decides to sell his portion of the business. Their partnership agreement says that Jack must first offer to sell to Jill. This arrangement is known as:

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Question 21 21. Which feature of a limited liability company is most like that of a corporation?

Question 22 22. Jerry and Jenny are partners in a real estate investment group. Jerry invests $500,000 of his own money to acquire properties. Jenny handles the real estate transactions. Jenny makes some bad deals and now the group owes $800,000 in delinquent mortgage payments. Jerry can be held personally liable for:

Question 23 23. A corporation must develop a set of rules by which the company is organized and operated. These rules are called:

Question 24 24. Ernie and Ellis are partners in an engineering firm. They have a limited liability partnership. Each invested $20,000 to start the firm. Ernie recently gave bad advice that resulted in a large office building being built on a known land fault. The engineering firm was sued and now has to pay a $1,000,000 court judgment. Ellis can be held personally liable for:

Question 25 25. Jack and Jill form a partnership in order to build a well. The partnership agreement defines the term of the partnership as six months or until the well is complete, whichever comes first. The well is complete after just four months. Jack and Jill go their separate ways. This is known as:

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Question 26 26. How does an owner start a sole proprietorship?

Question 27 27. How does an owner incorporate a sole proprietorship?

Question 28 28. The managers, or trustees, of a corporation are called:

Question 29 29. A limited liability company is a hybrid of which two business structures?

Question 30 30. Most corporations have perpetual existence. This means that:

Types of Business Organizations: Tutoring Solution Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next question. You can skip questions if you would like and come back to them later with the "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. You will lose your work if you close or refresh this page. Good luck!

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