Which of the following forms of business organization is the dominant economic force in the United States?
A) The sole proprietorship
B) The general partnership
C) The limited partnership
D) The joint venture
E) The corporation
A limited partner is liable
A) for only his or her own share of the partnership's debts.
B) for his or her own share of the partnership's debts and contingently liable for the other partners shares.
C) only up to the amount invested by that partner.
D) for none of the partnership's debts.
A corporation is owned by
A) shareholders and partners.
B) the shareholders who hold the company's stock.
C) the Board of Directors.
D) its Chief Executive Officer.
The major sources of financing for corporations are
A) partners contributions.
B) exchanges between shareholders.
C) interest and dividends.
D) debt and equity.
The term stockholder is equivalent to
A) general partner.
B) creditor.
C) shareholder.
D) stakeholder.
The sole proprietorship is the same as the individual for liability purposes.
Answer: TRUE
In a general partnership, all partners have unlimited liability for the actions of any one partner when that partner is conducting business for the firm.
Answer: TRUE
There is no legal distinction made between the assets of the business and the personal assets of the owners in the limited partnership.
Answer: FALSE
