1. (p.f114)f Thefcorporationfisfthefmostfcommonfformfoffbusinessfownership.
FALSE
AACSB:fReflectivefThinkingf
Blooms:fKnowledgef Learnin
gfGoal:f05-1
LevelfoffLearningf1:fKnowledgefoffkeyftermsf Nickel
sf-fChapterf05f#1
Topic:fBasicfFormsfoffBusinessfOwnership
2. (p.f114)f ThefthreefmajorfformsfoffbusinessfownershipfinfthefU.S.farefsolefproprietorships,fpartnerships,fandfcor
porations.
TRUE
AACSB:fReflectivefThinkingf
Blooms:fKnowledgef Learnin
gfGoal:f05-1
LevelfoffLearningf1:fKnowledgefoffkeyftermsf Nickel
sf-fChapterf05f#2
Topic:fBasicfFormsfoffBusinessfOwnership
3. (p.f114)f Fewfpeopleftodayfstartftheirfownfbusiness.
FALSE
AACSB:fReflectivefThinkingf
Blooms:fKnowledgef Learnin
gfGoal:f05-1
LevelfoffLearningf1:fKnowledgefoffkeyftermsf Nickel
sf-fChapterf05f#3
Topic:fBasicfFormsfoffBusinessfOwnership
1
,4. (p.f115)f Oncefafbusinessfisfestablished,fit'sfalmostfimpossibleftofchangeffromfonefformfoffbusinessfownershipftofanot
her.
FALSE
AACSB:fReflectivefThinkingf
Blooms:fKnowledgef Learnin
gfGoal:f05-1
LevelfoffLearningf1:fKnowledgefoffkeyftermsf Nickel
sf-fChapterf05f#4
Topic:fBasicfFormsfoffBusinessfOwnership
5. (p.f114)f Whenftwoforfmorefpeopleflegallyfagreeftofbecomefco-
ownersfoffafbusiness,fthefformfoffbusinessfisfcalledfafpartnership.
TRUE
AACSB:fReflectivefThinkingf
Blooms:fKnowledgef Learnin
gfGoal:f05-1
LevelfoffLearningf1:fKnowledgefoffkeyftermsf Nickel
sf-fChapterf05f#5
Topic:fBasicfFormsfoffBusinessfOwnership
6. (p.f114)f Aflegalfentityfwithfauthorityftofactfandfhavefliabilityfseparateffromfitsfownersfisfcalledfafpartnership.
FALSE
AACSB:fReflectivefThinkingf
Blooms:fKnowledgef Learnin
gfGoal:f05-1
LevelfoffLearningf1:fKnowledgefoffkeyftermsf Nickel
sf-fChapterf05f#6
Topic:fBasicfFormsfoffBusinessfOwnership
7. (p.f114)f Corporationsfrepresentf20fpercentfoffallfthefbusinessesfinfthefU.S.fandfearnf81fpercentfofftheftotalfU.S.fbusin
essfreceipts.
TRUE
AACSB:fReflectivefThinkingf
Blooms:fKnowledgef Learnin
gfGoal:f05-1
LevelfoffLearningf1:fKnowledgefoffkeyftermsf Nickel
sf-fChapterf05f#7
Topic:fBasicfFormsfoffBusinessfOwnership
2
,8. (p.f114)f Afcomparisonfoffthefthreefmajorfformsfoffbusinessfownershipfshowsfthatfsolefproprietorshipsfarefusu
allyfthefmostfdifficultftypefoffbusinessftofestablish.
FALSE
AACSB:fReflectivefThinkingf
Blooms:fKnowledgef Learnin
gfGoal:f05-1
LevelfoffLearningf1:fKnowledgefoffkeyftermsf Nickel
sf-fChapterf05f#8
Topic:fBasicfFormsfoffBusinessfOwnership
9. (p.f115)f Theffirstfstepfinfstartingfafsolefproprietorshipfisftoffillfoutfafproprietorshipfcharterfapplicationfformfandffilefit
fwithfthefstatefgovernment.
FALSE
AACSB:fReflectivefThinkingf
Blooms:fKnowledgef Learnin
gfGoal:f05-1
LevelfoffLearningf1:fKnowledgefoffkeyftermsf Nickel
sf-fChapterf05f#9
Topic:fSolefProprietorship
10. (p.f115)f Itfisfusuallyfeasyftofstartfandfendfafsolefproprietorship.
TRUE
AACSB:fReflectivefThinkingf
Blooms:fKnowledgef Learnin
gfGoal:f05-1
LevelfoffLearningf1:fKnowledgefoffkeyftermsf Nickel
sf-fChapterf05f#10
Topic:fSolefProprietorship
11. (p.f115)f Thefprofitsfoffafsolefproprietorshipfareftaxedfasfthefpersonalfincomefoffthefowner.
TRUE
AACSB:fReflectivefThinkingf
Blooms:fKnowledgef Learnin
gfGoal:f05-1
LevelfoffLearningf1:fKnowledgefoffkeyftermsf Nickel
sf-fChapterf05f#11
Topic:fSolefProprietorship
3
, 12. (p.f115)f Thefsolefproprietorshipfformfoffownershipftendsftofbefattractiveftofpeoplefwhofwantftofinvestfinfafcom
panyfwithoutftakingfanfactivefrolefinfmanagement.
FALSE
AACSB:fReflectivefThinkingf
Blooms:fKnowledgef Learnin
gfGoal:f05-1
LevelfoffLearningf1:fKnowledgefoffkeyftermsf Nickel
sf-fChapterf05f#12
Topic:fSolefProprietorship
13. (p.f115)f Afmajorfadvantagefoffsolefproprietorshipsfisfthatfanfownerfhasflimitedfliabilityfforfthefdebtsfoffhisforfherfb
usiness.
FALSE
AACSB:fReflectivefThinkingf
Blooms:fKnowledgef Learnin
gfGoal:f05-1
LevelfoffLearningf1:fKnowledgefoffkeyftermsf Nickel
sf-fChapterf05f#13
Topic:fSolefProprietorship
14. (p.f115)f Onefoffthefstrengthsfoffthefsolefproprietorshipfisfitsfabilityftofsustainfrapidfgrowthfbyfraisingflargefamo
untsfofffinancialfresources.
FALSE
AACSB:fReflectivefThinkingf
Blooms:fKnowledgef Learnin
gfGoal:f05-1
LevelfoffLearningf1:fKnowledgefoffkeyftermsf Nickel
sf-fChapterf05f#14
Topic:fSolefProprietorship
15. (p.f116)f Thefdebtsfoffafbusinessfoperatedfasfafsolefproprietorshipfarefconsideredftofbefthefpersonalfdebtsfoffthefowne
rfoffthefbusiness.
TRUE
AACSB:fReflectivefThinkingf
Blooms:fKnowledgef Learnin
gfGoal:f05-1
LevelfoffLearningf1:fKnowledgefoffkeyftermsf Nickel
sf-fChapterf05f#15
Topic:fSolefProprietorship
4