ECON 200 PRINCIPLES OF FOOD & RESOURCE ECONOMICS WK01-4 BUSINESS SYTEMS AGREE/DISAGREE SELF TEST 1. Print This Sheet 2. If you agree with the statement put an A in column A; If you disagree put a D in col A. 3. Check yourself by typing your answer in the corresponding cell on the computer 4. If the answer is correct, the word "REDO" will change to "RIGHT" in column B REDO REDO REDO REDO REDO REDO REDO REDO REDO 1 THE PREDOMINATE FORM OF BUSINESS OWNERSHIP IS THE SINGLE PROPRIETORSHIP 2 A MAJOR DISADVANTAGE OF OF PARTNERSHIP IS THE PARTNER'S UNLIMITED LIABILITY 3 COOPERATIVES AND CORPORATIONS PAY DIVIDENDS TO STOCKHOLDERS 4 A MAJOR ADVANTAGE OF THE CORPORATE FORM IS UNLIMITED LIABILITY OF STOCKHOLDERS 5 UNLIMITED LIABILITY IS A BIG PROBLEM OF A PROPRIETORSHIP 6 DIVIDENDS FROM SUBCHAPTER C CORPORATIONS ARE TAXED TWICE. 7 PARTNERSHIP PROFITS ARE TREATED AS TAXABLE INCOME FOR EACH PARTNER. 8 THE MAJOR ADVANTAGE OF A PROPRIETORSHIP IS FLEXIBLE MANAGEMENT 9 A GENERAL PARTNERSHIP HAS THE ADVANTAGE OF HAVING A SEPARATE LEGAL IDENTITY
REDO 10 A COOPERATIVE IS OWNED BY AND FOR ITS MEMBERS REDO 11 CORPORATION ARE THE NUMERICALLY DOMINANT BUSINESS FORM IN THE U.S. REDO 12 PARTNERSHIP ACCOUNT FOR LARGEST PORTION OF TOTAL OUTPUT REDO 13 TO KEEP A PARTNERSHIP GOING WHEN A PARTNER DIES, A NEW PARTNERSHIP MUST BE FORMED REDO 14 UNLIMITED LIABILITY IS A DISADVANTAGE OF PARTNERSHIP, BUT NOT PROPRIETORSHIP. REDO 15 IN A GENERAL PARTNERSHIP, EVERY ONE HAS LIMITED LIABILITY REDO 16 CORPORATIONS HAVE MORE ACCESS TO FINANCIAL RESOURCES THAN PARTNERSHIPS REDO 17 THE OWNER'S LIABILITY FOR DEBTS OF A BUSINESS ARE UNLIMITED IN A PARTNERSHIP REDO 18 A FIRM OWNED BY ONE PERSON IS CALLED A MONOPOLY REDO 19 IN A LIMITED PARTNERSHIP, EVERYONE HAS UNLIMITED LIABILITY. REDO 20 SHAREHOLDERS IN AN LCC HAVE ONE VOTE PER SHARE REDO 21 COMPLETE MANAGEMENT CONTROL IS AN ADVANTAGE OF PROPRIETORSHIP REDO 22 A UNIQUE FEATURE OF COOPERATIVES IS THE ONE PERSON - ONE VOTE PRINCIPLE. REDO 23 THE EASIEST & MOST INEXPENSIVE BUSINESS FORM TO ESTABLISH IS THE PARTNERSHIP. REDO 24 PROFITS OF A SUBCHAPTER S CORPORATION GET TAXED TWICE. REDO 25 A SUB CHAPTER C CORPORATION HAS A LIMIT OF 75 SHARE HOLDERS REDO 26 PARTNERSHIPS CAN RAISE MORE CAPITAL BY SELLING SHARES OF STOCK REDO 27 THE MOST RECENT FORM OF OWNERSHIP IS THE LIMITED LIABILITY COMPANY (LCC) REDO 28 A CORPORATION HAS A LEGAL IDENTITY SEPARATE & DISTINCT FROM ITS OWNERS REDO 29 ALL BUSINESS FORMS HAVE TO ANSWER THE HOW QUESTION REDO 30 MOST PROPRIETORSHIP AND PARTNERSHIP HIRE PROFESSIONAL MANAGERS REDO 31 GEN PARTNERSHIP & PROPRIETORSHIP NEED TO FILE PAPER WITH THE SEC OF STATE TO BE LEGAL. REDO 32 COOPERATIVES CAN ONLY EARN A LIMITED RETURN ON THEIR INVESTMENT. REDO 33 FAMILY FARMS ARE INCORPORATED TO HELP WITH THE INTER-GENERATIONAL TRANSFER. REDO 34 THE BOARD OF DIRECTORS DECIDE POLICY IN SUBCHAPTER C CORPORATION. REDO 35 COOPERATIVES ARE MOST PREVALENT IN AGRICULTURE. REDO 36 A MAJOR ADVANTAGES OF SUB C CORPORATIONS IS THE ABILITY TO RAISE CAPITAL. REDO 37 THE CORPORATION BOARD OF DIRECTOR HAVE UNLIMITED LIABILITY REDO 38 IN LIMITED A PARTNERSHIP, A GENERAL PARTNER'S LIABILITY IS LIMITED TO HIS CONTRIBUTION REDO 39 ONE OF THE ADVANTAGES OF A PROPRIETORSHIP IS LOW START UP COST REDO 40 A GENERAL PARTNERSHIP SHOULD HAVE A LEGAL AGREEMENT ALTHOUGH IT IS NOT NECESSARY REDO 41 A UNIQUE FEATURE ABOUT A COOPERATIVE IS WHO IS SERVED REDO 42 ALL PARTNERS IN A LIMITED PARTNERSHIP HAVE LIMITED LIABILITY REDO 43 ONE OF THE ADVANTAGES OF A SUB C CORPORATION IS ITS LIMITED LIFE REDO 44 A SUB S CORPORATION HAS A UNLIMITED NUMBER OF OWNERS REDO 45 RETURNS ARE UNLIMITED IN ALL BUSINESS FORMS EXCEPT THE COOPERATIVE. REDO 46 THE BOARD OF DIRECTORS ARE THE ONES WHO DECIDE POLICY REDO 47 ONE OF THE ADVANTAGES OF SUB S CORPORATION IS INTERGENERATION TRANSFER. REDO 48 SUB C CORPORATION HAVE ONE VOTE PER OWNER. REDO 49 GNERAL PARTNERSHIPS TYPICALLY DO NOT NEED TO VOTE ON POLICY. REDO 50 IN A SUB C CORPORATION, OWNERSHIP IS SEPARATE FROM MANAGEMENT REDO 51 ON ADVANTAGE OF CORPORATIONS & LCC'S IS PERPETUAL LIFE. REDO 52 OWNERSHIP AND MANAGEMENT ARE SEPARATE IN A PROPRIETORSHIP