CEM 100 EXAM 1 (2026-2027) QUESTIONS
AND ANSWERS GRADED A+
In the partnership method of business ownership, a partner that is liable for
partnership debts only up to the amount of their investments in the partnership
would be termed a ___
Limited partner
The ____ is not an enduring form of business ownership. Rather the ___ is a
temporary form of ownership whereby two or more companies unite and pool their
resources, assets, and skills to perform a single construction project and then go
their separate ways again following completion
Joint Venture
In a partnership, ____ exist when one party, called the principal, authorizes another
who is called the ___ to act for the former in certain types of defined business or
commercial transactions
Agency, Agent
According to your textbook, in the settlement of the debts of a partnership, ___
enjoy a position of first priority
Outside creditors
, Concerning establishing a partnership, state laws regarding partnerships are not
entirely consistent, although most states have adopted the ___ more or less
verbatim
Uniform Partnership Act
A stock palm that is a form of deferred compensation to those working fro the
corporation consisting of those working for the corporation investing in the stock
of their corporation, with these investments funded by tax-exempt contributions.
This stock plan termed a (an) ___ can be designed to accomplish different
purposes, including promoting a company growth by providing a new source of
equity capital, providing benefits for long term workers, allowing for the
retirement of company owners, accomplishing a change of company ownership,
and retiring stock presently owned by stockholders
Employee Stock Ownership plan (ESOP)
Concerning establishing a partnership, the contract between the partners is termed
the ___
Articles of Partnership
The primary disadvantage of the sole proprietorship form of business organization
is ___
Unlimited liability
Statutory entity that combines the limited personal liability feature of a corporation
and the partnership feature of taxation at the owner level is termed a (an)
AND ANSWERS GRADED A+
In the partnership method of business ownership, a partner that is liable for
partnership debts only up to the amount of their investments in the partnership
would be termed a ___
Limited partner
The ____ is not an enduring form of business ownership. Rather the ___ is a
temporary form of ownership whereby two or more companies unite and pool their
resources, assets, and skills to perform a single construction project and then go
their separate ways again following completion
Joint Venture
In a partnership, ____ exist when one party, called the principal, authorizes another
who is called the ___ to act for the former in certain types of defined business or
commercial transactions
Agency, Agent
According to your textbook, in the settlement of the debts of a partnership, ___
enjoy a position of first priority
Outside creditors
, Concerning establishing a partnership, state laws regarding partnerships are not
entirely consistent, although most states have adopted the ___ more or less
verbatim
Uniform Partnership Act
A stock palm that is a form of deferred compensation to those working fro the
corporation consisting of those working for the corporation investing in the stock
of their corporation, with these investments funded by tax-exempt contributions.
This stock plan termed a (an) ___ can be designed to accomplish different
purposes, including promoting a company growth by providing a new source of
equity capital, providing benefits for long term workers, allowing for the
retirement of company owners, accomplishing a change of company ownership,
and retiring stock presently owned by stockholders
Employee Stock Ownership plan (ESOP)
Concerning establishing a partnership, the contract between the partners is termed
the ___
Articles of Partnership
The primary disadvantage of the sole proprietorship form of business organization
is ___
Unlimited liability
Statutory entity that combines the limited personal liability feature of a corporation
and the partnership feature of taxation at the owner level is termed a (an)
