Unit 2 Quiz MT 209

Question 1 2 / 2 points
What is the main function of a corporate charter?
Question options:

A)
Providing financial forecasts for the corporation

B)
Verifying that the stated purpose of a nonprofit is valid

C)
Securing the limited liability of all stockholders

D)
Verifying that the corporation exists
Question 2 2 / 2 points
Members must apply to the secretary of state and pay all required fees to create which of the following legal forms of organization?
Question options:

A)
Partnership

B)
C corporation

C)
Stockholder trust

D)
Sole proprietorship
Question 3 2 / 2 points
Liability on the part of an owner that includes only the owner’s investment in the business is best described with which of the following terms?
Question options:

A)
Limited liability

B)
Unsolicited liability

C)
Unlimited liability

D)
Extended liability
Question 4 2 / 2 points
Which of the following is a document that formally establishes a corporation’s existence?
Question options:

A)
Stock certificate

B)
Corporate writ

C)
Corporate charter

D)
Decree of existence
Question 5 0 / 2 points
The advantages created by an individual’s connections in a social network are best described with which of the following terms?
Question options:

A)
Social network

B)
Social media

C)
Social expediency

D)
Social capital
Question 6 2 / 2 points
Which of the following is a legal form of organization where owners have limited liability and pay personal income taxes on business profit?
Question options:

A)
C corporation

B)
Stockholder corporation

C)
Limited liability corporation

D)
S corporation
Question 7 2 / 2 points
Which of the following descriptions depicts the C corporation form of organization?
Question options:

A)
A corporation taxed by the federal government as a separate legal entity

B)
A corporation that is exempt from federal government taxation and regulation

C)
A corporation owned by one person who assumes complete liability

D)
A corporation owned by two or more people who share unlimited liability
Question 8 2 / 2 points
Which of the following descriptions best distinguishes a partnership from a sole proprietorship?
Question options:

A)
Liability is assumed by the business itself, not the owners.

B)
Profits are shared; however, losses are assigned to the business.

C)
Liability and risk are shared equally among all owners.

D)
Risk, profit, loss, and liability are all assigned to the business.
Question 9 2 / 2 points
Which of the following is a form of corporation designed for businesses that serve civic, educational, charitable, or religious purposes?
Question options:

A)
Professional corporation

B)
Nonprofit corporation

C)
B corporation

D)
S corporation
Question 10 2 / 2 points
Which of the following forms of corporation is designed for businesses that exist to make positive social or environmental impacts?
Question options:

A)
S corporation

B)
Nonprofit corporation

C)
B corporation

D)
Professional corporation

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