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Taxation of Business Entities 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!

Page 1

Question 1 1. A house has a property tax value of $12,800. What is the appraised value of the house if tax is calculated based on 16 percent of the appraised value?

Question 2 2. A house with an appraised value of $750,000 is located in a place with a tax rate of $60 per $5,000. What is the property tax?

Question 3 3. A house has an appraised value of $250,000. The local government has a tax rate of $75 per $1,000 for calculating the property tax. What is the property tax?

Question 4 4. Betty and Bert start a bicycle repair business. Betty runs the shop and Bert fixes the bikes. Bert repairs Bea's bike, but he forgets to tighten the bolts on her seat. Bea falls off the bike and is injured. She sues the bike shop and is awarded a money judgment. Which of the following is true?

Question 5 5. Which of the following is NOT an aspect of a limited partnership?

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Question 6 6. Which of the following is NOT an aspect of a general partnership?

Question 7 7. Which of these business types does not 'outlive' the business founder?

Question 8 8. How many times is the profit of a sole proprietorship taxed?

Question 9 9. What is a sole proprietorship?

Question 10 10. At what point after purchase is an asset considered 'long-term' and not 'short-term?'

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Question 11 11. What is the typical tax on long-term capital gains?

Question 12 12. What kind of investor would most likely face short-term capital gains taxes?

Question 13 13. In what decade was the alternative minimum tax introduced?

Question 14 14. Who is the intended target of the alternative minimum tax?

Question 15 15. Which of these could result in a tax break?

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Question 16 16. Alisa owns Alright Business Services. It is a corporation, but Alisa does not use the word 'Incorporated' or 'Inc.' anywhere on her correspondence. Alisa is in charge of paying the bills for the business and sometimes writes rent checks out of her personal account. The business is not doing well, and is several months behind on making rent payments. Her landlord sues Alright Business Services and Alisa for the rent. How will the landlord recover the unpaid rent?

Question 17 17. A corporation is taxed on its profits, and the owners are taxed on the income they receive from the corporation. What does this refer to?

Question 18 18. 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?

Question 19 19. What is a sales tax permit?

Question 20 20. What are the possible filing requirements for sales tax permits?

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Question 21 21. Which of the following may be tax exempt?

Question 22 22. What percent of the Medicare and social security does an employer pay?

Question 23 23. Which is an example of a payroll tax?

Question 24 24. Which of these is FALSE about payroll taxes?

Question 25 25. Select the statement that is NOT true of property taxes.

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Question 26 26. In a partnership, the business isn't separately taxed but the partners are. This is commonly called:

Question 27 27. If someone sues a sole proprietorship, who is responsible for the debt?

Question 28 28. When might someone consider taking the extra tax burden of a short-term capital gains tax?

Question 29 29. What is the cutoff for the alternative minimum tax?

Question 30 30. A corporation's owners are known as _____.

Taxation of Business Entities Chapter 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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