Reference no: EM13338488
1. A local retail shop has been operating as a soleproprietorship. The business is growing and now the owner wants toincorporate. Which of the following is not a reason for this ownerto incorporate?
A. the prestige of operating as a corporation
B. ability to raise capital for expansion
C. the ease in transferring shares of the corporation’sstock
D. desire to limit the owner’s personal liability
2. The proprietorship form of business organization
A. combines the records of the business with the personal recordsof the owner.
B. must have at least two owners in most states.
C. is classified as a separate legal entity.
D. generally receives favorable tax treatment relative to acorporation.
3. Which of the following is correct about litigatingcommercial disputes?
A. A few states have established specialized trial courts forcommercial disputes.
B. Businesses generally dislike the concept of specialized trailcourts for commercial disputes because the large numbers ofconsumers who sue businesses in these courts have led the judges tobecome generally biased against business.
C. Commercial disputes, because of their specialized nature, arefirst heard at the appellate court level.
D. In all states, commercial disputes must be heard in alimited-jurisdiction court.
E. Nearly all states have specialized trial courts that hearcommercial disputes.
4. Which of the following statements is generally not trueabout state intermediate appellate courts?
A. The appellate court reviews the record of the trial court.
B. Appellate court decisions are final and further appeal is notpossible.
C. The appellate court allows the parties to make oral argumentsoutlining their position.
D. The appellate court allows the parties to introduce new evidenceso long as it was not previously introduced at the originaltrial.
E. The appellate court usually allows the parties to file briefsoutlining support for their positions.
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