ons 1-17 (34 Points) 18-33 (48 Points) 34 (18 Points) Indicate the answer choice

Question

ons 1-17 (34 Points) 18-33 (48 Points) 34 (18 Points) Indicate the answer choice that best completes the statement or answers the question 1. Which of the following is a disadvantage of a partnership when compared to a corporation? a. The partnership is more likely to have a net loss. b. The partnership is easier to organize. c. The partnership is less expensive to organize. d. The partnership has limited life. 2. An advantage of the partnership form of business organization is a. unlimited liability b. mutual agency c. case of formation life the following below is not one of the four major forms of business entities that are discussed in this chapt e proprictorship corporation d. 4. When a partnership is formed, assets contri partners should be recorded on the partnership books at th a. book values on the partners' books prior to their being contributed to the partnership b. fair market value at the time of the contribution c. original costs to the partner contributing them d. assessed values for property tax purposes 5. If there is no written agreement as to the way income will be divided among partners a. they will share income and losses equally b. they will share income and losses according to their capital balances c. they will share income and losses according to the time devoted to the business d. there really is no partnership agreement 6. Characteristies of a corporation include a. shareholders who are mutual agents b. direct management by the shareholders (owners) c its inability to own property d. shareholders who have limited liability 7. One of the main disadvantages of the corporate form is the a. professional management b. double taxation of dividends e charter Canyright Cengage Leaming. Powered by Cognero

Explanation / Answer

1.Disadvantage of partnership is:

d. The partnership had limited life

While a corporation has unlimited life

Easier and less expensive to organise are the advantages and net loss is not certain in a partnership

2.Advantage is

C. Ease of formation

Unlimited liability, limited life are the disadvantages.

3. D. Subchapter S corporation

Sole proprietorship, partnership and corporation are major forms of business entities while S corporation is a sub category of Corporation only

4. B Fair market value at the time of contribution

Since it reflect the true capital contributed by the partners

5. a. They will share income and losses equally

6.D Shareholders who have limited liability

7. b. Double taxation of dividends

Professional Management and charter are advantages

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