ESV v2 Practice Quiz

What is a characteristic of a Non-profit organization?

• It is best for international business

• It has shared financial backing

• It has no ownership and pays no US federal taxes

• It is easy to create and comes with unlimited liability

Which legal structure is best for international business even with the company being double-taxed?

• S-Corp

• Non-profit

• C-Corp

• LLC

What is a benefit of an S-Corp?

• Shared financial backing

• Lower tax rate that prevents the company from being double-taxed

• No ownership and no US federal taxes

• Ideal for a single owner seeking low risk

Which legal structure is ideal for a single owner seeking low risk?

• Partnership

• Proprietorship

• Non-profit

• LLC

What is a disadvantage of a Proprietorship?

• It is best for international business

• It has a lower tax rate

• It comes with unlimited liability

• It is ideal for a single owner

What is a characteristic of a Partnership?

• No US federal taxes

• Lower tax rate

• Shared financial backing

• Best for international business

What is the role of a CEO in a company?

• Manages day-to-day office tasks

• Responsible for the company's success and makes major decisions

• Handles customer service inquiries

• Directly manages all the entry-level employees

Who does the CEO report to?

• The shareholders

• The customers

• The Board of Directors

• The company's employees

Which of the following is NOT a responsibility of the CEO?

• Developing the company's vision, strategy, and mission

• Overseeing operations and resources

• Making minor decisions for the company

• Being the highest ranked in management

What is one of the responsibilities of a CFO?

• In charge of the company's marketing strategies

• Manages and plans cash flow

• Oversees the recruitment process

• Directs customer service policies