05 Key
1. (p.b 114)b Theb corporationb isb theb most b commonb formb of b businessb ownership.
FALSE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #1
Topic: b Basicb Formsb ofb Businessb Ownership
2. (p.b 114)b Theb threeb majorb formsb ofbbusinessb ownershipb inb thebU.S.bareb soleb proprietorships,b partnerships,b andbc
orporations.
TRUE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #2
Topic: b Basicb Formsb ofb Businessb Ownership
3. (p.b 114)b Few b peopleb todayb start b theirb ownb business.
FALSE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #3
Topic: b Basicb Formsb ofb Businessb Ownership
1
,4. (p.b 115)b Onceb abbusinessb isb established,bit'sbalmost b impossibleb tob changeb fromb onebformb of bbusinessb ownershipb toba
nother.
FALSE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #4
Topic: b Basicb Formsb ofb Businessb Ownership
5. (p.b 114)b Whenb twob orb moreb peopleb legallyb agreeb tob becomeb co-
ownersb of b ab business,b theb formb of b businessb isb called b ab partnership.
TRUE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #5
Topic: b Basicb Formsb ofb Businessb Ownership
6. (p.b 114)b Ab legalb entityb withb authorityb tob act b and b haveb liabilityb separateb fromb itsb ownersb isb called b ab partnership.
FALSE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #6
Topic: b Basicb Formsb ofb Businessb Ownership
7. (p.b 114)b Corporationsb represent b 20bpercent b ofballb thebbusinessesb inb thebU.S.b andbearnb 81bpercent bofbthebtotalb U.S.bb
usinessb receipts.
TRUE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #7
Topic: b Basicb Formsb ofb Businessb Ownership
2
,8. (p.b 114)b Abcomparisonb of b thebthreeb majorb formsb of b businessb ownershipb showsb that b soleb proprietorshipsb areb
usuallyb theb most b difficult b typeb of b businessb tob establish.
FALSE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #8
Topic: b Basicb Formsb ofb Businessb Ownership
9. (p.b 115)b Theb first b stepb inbstartingbab soleb proprietorshipb isb tobfillb out babproprietorshipb charterb applicationb formb andbfi
leb it b withb theb stateb government.
FALSE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #9
Topic: b Soleb Proprietorship
10. (p.b 115)b It b isb usuallyb easyb tob start b and b end b ab soleb proprietorship.
TRUE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #10
Topic: b Soleb Proprietorship
11. (p.b 115)b Theb profitsb of b ab soleb proprietorshipb areb taxed b asb theb personalb incomeb of b theb owner.
TRUE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #11
Topic: b Soleb Proprietorship
3
, 12. (p.b 115)b Theb soleb proprietorshipb formb ofbownershipb tendsb tobbeb attractivebtobpeopleb whobwantb tobinvest b inbab c
ompanyb without b takingb anb activeb roleb inb management.
FALSE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #12
Topic: b Soleb Proprietorship
13. (p.b 115)b Abmajorb advantagebofbsoleb proprietorshipsb isb that banbownerb hasblimited b liabilityb forbthebdebtsbofbhisb orb h
erb business.
FALSE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #13
Topic: b Soleb Proprietorship
14. (p.b 115)b Onebof btheb strengthsb ofbtheb soleb proprietorshipb isb itsbabilityb tobsustainb rapid bgrowthbbyb raisingb largeb a
mountsb of b financialb resources.
FALSE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #14
Topic: b Soleb Proprietorship
15. (p.b 116)b Theb debtsb ofbabbusinessb operated basb absoleb proprietorshipb areb considered btobbeb thebpersonalb debtsb ofbthebo
wnerb of b theb business.
TRUE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #15
Topic: b Soleb Proprietorship
4
1. (p.b 114)b Theb corporationb isb theb most b commonb formb of b businessb ownership.
FALSE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #1
Topic: b Basicb Formsb ofb Businessb Ownership
2. (p.b 114)b Theb threeb majorb formsb ofbbusinessb ownershipb inb thebU.S.bareb soleb proprietorships,b partnerships,b andbc
orporations.
TRUE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #2
Topic: b Basicb Formsb ofb Businessb Ownership
3. (p.b 114)b Few b peopleb todayb start b theirb ownb business.
FALSE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #3
Topic: b Basicb Formsb ofb Businessb Ownership
1
,4. (p.b 115)b Onceb abbusinessb isb established,bit'sbalmost b impossibleb tob changeb fromb onebformb of bbusinessb ownershipb toba
nother.
FALSE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #4
Topic: b Basicb Formsb ofb Businessb Ownership
5. (p.b 114)b Whenb twob orb moreb peopleb legallyb agreeb tob becomeb co-
ownersb of b ab business,b theb formb of b businessb isb called b ab partnership.
TRUE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #5
Topic: b Basicb Formsb ofb Businessb Ownership
6. (p.b 114)b Ab legalb entityb withb authorityb tob act b and b haveb liabilityb separateb fromb itsb ownersb isb called b ab partnership.
FALSE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #6
Topic: b Basicb Formsb ofb Businessb Ownership
7. (p.b 114)b Corporationsb represent b 20bpercent b ofballb thebbusinessesb inb thebU.S.b andbearnb 81bpercent bofbthebtotalb U.S.bb
usinessb receipts.
TRUE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #7
Topic: b Basicb Formsb ofb Businessb Ownership
2
,8. (p.b 114)b Abcomparisonb of b thebthreeb majorb formsb of b businessb ownershipb showsb that b soleb proprietorshipsb areb
usuallyb theb most b difficult b typeb of b businessb tob establish.
FALSE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #8
Topic: b Basicb Formsb ofb Businessb Ownership
9. (p.b 115)b Theb first b stepb inbstartingbab soleb proprietorshipb isb tobfillb out babproprietorshipb charterb applicationb formb andbfi
leb it b withb theb stateb government.
FALSE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #9
Topic: b Soleb Proprietorship
10. (p.b 115)b It b isb usuallyb easyb tob start b and b end b ab soleb proprietorship.
TRUE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #10
Topic: b Soleb Proprietorship
11. (p.b 115)b Theb profitsb of b ab soleb proprietorshipb areb taxed b asb theb personalb incomeb of b theb owner.
TRUE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #11
Topic: b Soleb Proprietorship
3
, 12. (p.b 115)b Theb soleb proprietorshipb formb ofbownershipb tendsb tobbeb attractivebtobpeopleb whobwantb tobinvest b inbab c
ompanyb without b takingb anb activeb roleb inb management.
FALSE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #12
Topic: b Soleb Proprietorship
13. (p.b 115)b Abmajorb advantagebofbsoleb proprietorshipsb isb that banbownerb hasblimited b liabilityb forbthebdebtsbofbhisb orb h
erb business.
FALSE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #13
Topic: b Soleb Proprietorship
14. (p.b 115)b Onebof btheb strengthsb ofbtheb soleb proprietorshipb isb itsbabilityb tobsustainb rapid bgrowthbbyb raisingb largeb a
mountsb of b financialb resources.
FALSE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #14
Topic: b Soleb Proprietorship
15. (p.b 116)b Theb debtsb ofbabbusinessb operated basb absoleb proprietorshipb areb considered btobbeb thebpersonalb debtsb ofbthebo
wnerb of b theb business.
TRUE
AACSB: bReflectivebThinking
b Blooms: bKnowledgeb Lear
ning b Goal: b 05-1
Levelb ofbLearningb1:bKnowledgebofbkeybtermsb Nic
kelsb - b Chapterb 05 b #15
Topic: b Soleb Proprietorship
4
