Assessment 10.1 - 10.4

David and Noah are discussing about Ava, who recently started her own business. According to them, which of the following is not characteristic of Ava as an entrepreneur?

• Ava is a self-starter.

• Ava likes to make sure others do most of the work.

• Ava enjoys working on her own.

• Ava usually works hard and for long periods.

Which of the following is not an advantage of a proprietorship?

• The owner is her own boss.

• The owner receives all the profits.

• The owner deals with limited red tape.

• The owner pays more taxes than corporations do

Hannah, Henry, and Maya are planning to start a business together. Which of the following is not an advantage of their partnership?

• They can pool their skills and abilities.

• They can provide greater amounts of capital.

• They have limited liability.

• The business’s credit is improved.

Which of the following is not a disadvantage of a partnership?

• Partnerships may reduce competition.

• Partners may disagree.

• Partners are bound by contracts of others.

• Partnerships have an uncertain life

A corporation that does not offer its stock to the public for sale is called a(n)

• close corporation

• open corporation

• private corporation

• none of the above

Which of the following is NOT an advantage of a corporate form of ownership?

• available sources of capital

• double taxation

• limited liability

• permanency of existence

Avery, Oliver, and Grace are studying different forms of corporations. They came across several specialized forms including joint venture, quasi-public, nonprofit, and LLC. However, they realized one of them is not a specialized form of corporation. Which one is it?

• joint venture

• quasi-public

• nonprofit

• LLC

A corporation can have a special tax status by structuring as a(n) LLC

• Everything to the right is correct

• Subchapter S corporation

• nonprofit corporation

• LLC

Which of the following is not a characteristic of a corporation?

• Corporations have limited liability.

• Corporations have an unlimited life.

• Corporations are subject to double taxation.

• Corporations require the owner to be actively involved in all decisions.

Which of the following is not a benefit of being an entrepreneur?

• Entrepreneurs have the freedom to make their own decisions.

• Entrepreneurs can potentially earn a high income.

• Entrepreneurs have job security.

• Entrepreneurs have a guaranteed steady income.