COMPREHENSIVE EXAM 2026 QUESTIONS
AND ANSWERS 100% CORRECT
◉ However, based on the dollar value of sales, most business is done by.
Answer: Corporations
◉ Businesses are frequently started as _______________ and then
converted to _________ when their growth results in disadvantages
outweighing advantages. Answer: proprietorships, corporations
◉ A proprietorship has three important advantages: (1) It is easily and
inexpensively formed, (2) it is subject to _______ government
regulations, and (3) it is subject to lower income taxes than are
_________ . Answer: few, corporations
◉ A proprietor has _______ personal liability for the business' debts. (2)
The life of the business is limited to the life of the individual who
created it. (3) A proprietorship has difficulty obtaining large sums of
capital so proprietorships are used primarily for small businesses.
Answer: unlimited