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Understanding Business Structures 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. Stevie wants to renovate his current storefront cafe to include a open BBQ pit and a brick oven pizza. What type of permit does he need?

Question 2 2. Which of the following permits are for businesses who comply with regulations concerning chemical spills and pollution?

Question 3 3. Duffs McGee wants to open a small casino on the corner of Main and Elm Streets. It happens to be within 200 yards of an elementary school. In order for Duffs to open the gambling house, he would have to get which type of license or permit?

Question 4 4. What must a person seeking an occupational license do in order to obtain a license?

Question 5 5. What is the purpose of requiring a bar to be licensed with the Alcohol and Tobacco Tax and Trade Bureau?

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Question 6 6. A sole proprietorship must register with which of the following?

Question 7 7. What happens if a sole proprietorship takes on a second owner?

Question 8 8. Which of the following businesses represents a sole proprietorship?

Question 9 9. How much protection from liability does a sole proprietorship offer?

Question 10 10. Which of the following describes the income tax treatment for a sole proprietorship?

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Question 11 11. Which of the following is the best explanation of the main difference or differences between a limited partner and a general partner?

Question 12 12. Which one of the following is the partnership document that governs the rights and responsibilities of the partners?

Question 13 13. What type of partnership has a general partner who has full liability and a limited partner whose liability is limited to their investment in the partnership?

Question 14 14. Which one of the following do LPs, LLPS, and LLLPs have in common but is not a characteristic of a general partnership?

Question 15 15. What type of partnership offers no protection from personal liability for the partners?

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Question 16 16. What document is used to govern the operations of a limited liability company?

Question 17 17. Bob goes to Susie's General Store which is a Limited Liability Company. While there, something falls off the shelf and hits Bob on the head. Bob wants to pursue legal action. What are Bob's legal options?

Question 18 18. What is the best explanation of pass-through taxation?

Question 19 19. Which of the following is true about a limited liability company?

Question 20 20. What does someone have to file to form a limited liability company?

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Question 21 21. Which one of the following is considered a disadvantage of a corporation?

Question 22 22. Tyler is the sole owner and stockholder of the corporation, Tyler's Tires. Two years ago, Tyler's Tires hired Anna as the CEO. If Tyler dies, what happens to Tyler's Tires?

Question 23 23. What is the difference between an S-corporation and a C-corporation?

Question 24 24. What do you call the documentation that governs the corporation's activities?

Question 25 25. What is the primary reason a business a would decide to become a corporation over any other form of organization?

Understanding Business Structures 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!

Business 321: Small Business Management  /  Business Courses
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