1. When a limited partnership is formed A. The

1. When a limited partnership is formed

A. The partnership activities are limited

B. All partners have limited liability

C. Some of the partners have limited liability

D. None of the partners have limited liability

2. Which of the following below is not one of the four major forms of business entities that are discussed in this chapter?

A. Sole proprietorship

B. Corporation

C. Partnership

D. Subchapter s corporation

3. Which of the following below is not a characteristic of a Limited Liability Company?

A. Limited life

B. Limited liability

C. File articles of organization with the state government

D. Avoids mutual agency

4. Accounting for the day-to-day activities for a partnership or Limited Liability Company is

A. The same as the accounting for any other form of business

B. The same as the accounting for a sole proprietorship only

C. Is not the same as the accounting for any other form of business?

D. The same as the accounting for a corporation only

5. When a partnership is formed, assets contributed by the partners should be recorded on the partnership books at their

A. Book values on the partners’ books prior to their being contributed to the partnership

B. Fair market value at the time of the contribution

C. Original costs to the partner contributing them

D. Assessed values for property purposes

Chapter 13—Corporations: Organizations, Stock Transactions, and Dividends

MULTIPLE CHOICE – Please circle the correct answer for each statement or question below.

6. Characteristics of a corporation include

A. Shareholders who are mutual agents

B. Direct management by the shareholders (owners)

C. Its inability to own property

D. Shareholders who have limited liability