ESB REVIEW

Front

Sole Proprietorship.

Back

Easiest to set up, but exposes the owner to unlimited financial liability

Front

General/Limited Partnership.

Back

would automatically terminate upon the death of one of the partners?

Front

Which type of business legal structure is not owned by anybody and does not pay any U.S. federal taxes?

Back

Nonprofit Corporation

Front

T/F: A limited liability company would be the best option for a single mom seeking low-risk.

Back

True

Front

A C corporation is similar to an S corporation but.....

Back

higher

Front

An S corporation is the best business structure for

Back

conducting international business

Front

Which of these is needed to verify to a food truck employer that their employees are qualified in food handling? license, pass, zoning variance, certificate

Back

certificate

Front

An individual starts a babysitting business with a loan of $1,000 for 2 years at 5% COMPOUND interest rate. How much will the individual owe by the end of the 2 year term (future value of loan)?

Back

$1,102.50

Answer explanation

End of year 1:

1,000 x .05 = 50; 1,000 + 50.00 = 1,050

End of year 2: 1,050 x .05 = 52.50; 1,050 +52.50 = 1,102.50

Front

Which type of legal structure must pay self-employment tax? Options: Sole Proprietorship, S corporation, C corporation, Limited liability companies

Back

Sole Proprietorship

Front

An entrepreneur notices new demand for products featuring characters from a recent movie. The entrepreneur finds a manufacturer of kitchen products featuring these characters. What should be a primary concern of this entrepreneur?

Back

reliabilty of supply