[Solved] A Sole Proprietorship Is a Form of Business Ownership in Which

A limited partnership is an agreement between two or more individuals to operate a business as co-owners for a limited period of time.

It is possible to establish a corporation by a simple verbal agreement.

Michael owns 100 shares of stock in the Samson Electricals Corporation, but as a stockholder he does not have the right to vote in stockholders' meetings. In this scenario, Michael owns common stock.

The owner of a single-person LLC can avoid paying self-employment taxes by electing to have the LLC treated as a corporation.

Franchising is seldom used to move into foreign markets.

A partnership: A) is a form of business ownership with a single owner who usually actively manages the company. B)is a form of business ownership in which the business is considered a legal entity that is separate and distinct from its owners. C)is a form of business ownership that offers both limited liability to its owners and flexible tax treatment. D)is a voluntary agreement under which two or more people act as co-owners of a business for profit.

A corporation is a form of business ownership in which: A)a business is considered a legal entity that is separate from its owners. B)a single owner actively manages a company. C)two or more people act as co-owners of a company. D)the owners of a business have unlimited liability for any claims against the firm.

Which of the following is a consequence of a corporation being a separate entity from its owners?​ A)The owners are not personally responsible for the obligations of a company. B)The articles of incorporation are not required to set up a corporation. C)A corporation cannot enter into binding contracts in its name. D)The death or withdrawal of an owner dissolves a corporation.

Which of the following would be an example of a corporation? A)Sparkles is a business firm owned by a single person who takes up complete liability for the business. B)The owners of Octave Inc. are not personally responsible for the debts and obligations of the firm. C)The profits earned by Luxe Clothing are legally considered as the income of the firm's owners. D)The dissolution of Nutrimax Pizzas results in its owners having to repay the debts of the firm.

Which of the following is a disadvantage of a sole proprietorship? A)The owner is personally liable for the debts of the firm. B)The firm is subject to double taxation. C)The profits of the firm have to be shared between its members. D)The costs of formation of the firm are more compared to other business forms.