Dan, Fran, and Stan want to establish and operate a mountain bike sales and rental shop. Dan
and Fran will be actively involved in the management of the business, but Stan is investing most
of the money.
The three of them do not want to form a corporation, but want to use a form of
business, if possible, that will give limited liability to each of them. Which of the following is
true?
A) They could form either a limited liability company or possibly a limited liability
partnership, and either of these would give limited liability to each of the three owners.
B) They could form a limited liability company and each have limited liability, but if they
formed either a limited partnership or limited liability partnership there would be at least
one partner with unlimited liability.
C) Because Dan and Fran will be actively managing the business, there is no form of business
other than a corporation that will give them limited liability.
D) They could each have limited liability in a properly formed limited partnership, limited
liability partnership, or limited liability company.
A
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An inside sales force is often used to reach small or hard-to-reach customers that a firm might otherwise promote to with mass selling or ignore altogether.
Answer the following statement true (T) or false (F)
The income or loss from a sole proprietorship is reported on ________ which must be attached to the owner's Form 1040
A) Schedule B B) Schedule C C) Form 14 D) Form 8
Rewrite the item using the singular possessive. Example tail of the dog dog's tail life of the cat
The preemptive right is important to shareholders because it
A. allows managers to buy additional shares below the current market price. B. will result in higher dividends per share. C. is included in every corporate charter. D. protects the current shareholders against a dilution of their ownership interests. E. protects bondholders and thus enables the firm to issue debt with a relatively low interest rate.