Business Structures/Plan Test Review

Supplies, office equipment, and products to sell are assets.

• TRUE
• FALSE

A general partner has no decision-making authority.

• TRUE
• FALSE

S corporations are different from C corporations due because they are only taxed once.

• TRUE
• FALSE

Start-up costs include permit fees.

• TRUE
• FALSE

You should estimate your business’s projected revenues on the low side and its expenses on the high side.

• TRUE
• FALSE

When completing a SWOT analysis, you should assess the strengths and weaknesses that are external to the company and out of your control.

• TRUE
• FALSE

Business owners can use reserve capital for worthwhile business opportunities as well as the unexpected.

• TRUE
• FALSE

A disadvantage of a sole proprietorship is unlimited liability for business debts.

• TRUE
• FALSE

Projected income statements and income statements are the same thing.

• TRUE
• FALSE

The first step in writing a strategic plan is ____.

• setting goals
• planning a course of action
• choosing promotions
• recording transactions