Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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1. Which of the following is an advantage of partnerships?
a. Each partner has limited liability for the debts of a business.
b. Each partner is responsible only for his or her acts.
c. A business continues to exist even after the death of any one partner.
d. More capital can be raised since good credit may be available.
2. Which of the following factors should be considered while choosing the proper legal form for a business?
a. Packaging of the product
b. Location of the factory
c. Nature of the business
d. Name of the product
3. Once the choice of a legal form for a new business has been made, it cannot be changed until the business is dissolved or sold.
a. True
b. False
4. An equal partnership between owners is advisable in order to facilitate decision-making.
a. True
b. False
5. Which of the following is an advantage of a corporation?
a. It cannot make use of a business owner's personal property to pay the debts of the business.
b. It gives unlimited powers to the owners.
c. The procedures required by the government for its formation are not complex.
d. The tax advantages received in this form of business are unique.
6. In a limited partnership, the general partners have limited personal liability for the debts of the business.
a. True
b. False
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