1. The easiest form of business organization in terms of formation and record-keeping is the
a. sole proprietorship
b. general or limited partnership
c. limited liability company
d. C or S corporation
e. All of the above are equally easy to form and keep records
2. The form of business organization that limits the number of shareholders and allows only one form of stock is the
a. sole proprietorship b. limited liability company c. C corporation d. S corporation e. None of the above
3. When the ownership and management of a venture are one and the same, strategies for minimizing taxes are employed. Which of the following strategies is NOT illegal?
a. Deducting personal expenses through the company b. Filing taxes on a cash basis rather than on an accrual basis c. Lending money to the owner in lieu of a salary or dividends d. Undercounting inventory e. All of the above are illegal tax strategies
4. Which of the following practices is NOT characteristic of a successful entrepreneurial venture?
a. Deliver high-quality products or services b. Anticipate and obtain multiple rounds of financing as the venture grows c. Expand rapidly into unrelated business lines in order to speed diversification d. Identify and develop functional area managers and manage in a collaborative style e. All of the above are characteristic of a successful entrepreneurial venture
5. A patent protects intellectual property rights for inventions that are useful, novel, and non-obvious. Which of the following is NOT a type of patent?
a. Utility patent b. Design patent c. Plant patent d. Business method e. All of the above are types of patents
6. The break-even point is NOT a function of which of the following?
a. income taxes b. fixed costs c. variable costs d. contribution profit margin e.
