Reference no: EM133392598
Questions
1. LLC owners are called ________.
A. members
B. shareholders
C. limited equity investors
D. directors
2. LLCs offer flexible tax treatment, meaning ________.
A. they can be taxed like corporation
B. they can be taxed like partnerships
C. they can be taxed like proprietorships
D. All choices are correct.
3. Sole proprietorships offer limited liability ________.
A. if you register it with the state
B. if you elect to be taxed as a corporation
C. if you have an SBA loan guarantee
D. Sole proprietorships never have limited liability.
4. A sole proprietorship ________.
A. pays taxes at the highest corporate rate
B. pays taxes at the lowest corporate rate
C. pays taxes at the individual rate
D. None of these choices are correct.
5. Sole proprietorships ________.
A. must register with the state
B. are similar to general partnerships in terms of liability
C. are similar to LLCs in terms of liability
D. are not allowed by law to operate outside of the US
6. States can levy a sales tax on items sold online to a customer in a different state if ________.
A. the business has a nexus with that state
B. there is an contract between the business and the state comptroller
C. the items sold are over $300
D. the business is one that only sells foreign-made items
7. As a general rule, LLCs, GPs, and SPs are taxed as ________.
A. corporations
B. not taxed
C. individuals
D. taxed twice, once as entity and once as individuals
8. Entrepreneurs can choose what state to incorporate in, and many choose ________.
A. New York
B. Delaware
C. California
D. Texas
9. Enterprise risk management includes ________.
A. identifying risk
B. risk assessment
C. risk abatement
D. All of the choices are correct.
10. A business owner can insure against all but which one of the following?
A. earthquakes
B. a bad economy
C. flooding
D. hurricanes
11. Examples of risk facing a business include ________.
A. human risks
B. economic risks
C. natural risks
D. All of the choices are correct.