I have provided true or false below.
<u>Explanation</u>:
1. This is TRUE.
A sole proprietorship is the most popular type of business organization in the United States. It is a True statement.
2. This is TRUE.
Employment taxes include Social Security taxes, Medicare taxes, and federal unemployment taxes. It is a true statement.
3. This is FALSE.
An entrepreneur is a person who decides how to combine resources to create goods and services. It is a false statement.
4. This is FALSE.
A business license is the legal obligation to pay debts. It is a false statement.
5. This is FALSE.
The least common type of business partnership is the general partnership. It is a false statement.
6. This is TRUE
Fringe benefits are payments to employees of wages or salaries. It is a true statement.
7. This is TRUE.
The biggest disadvantage of sole proprietorship is unlimited personal liability. It is a true statement.
8. This is FALSE
One advantage of sole proprietorships is that they are exempt from zoning laws. It is a false statement.
9. This is FALSE
A partnership is the most popular type of business organization in the United States. It is a false statement.
10. This is TRUE
Partnerships are a good choice of business organization if owners are willing to share both the responsibility of running the business and the economic right to enjoy the profits it earns. It is a true statement.
11. This is FALSE.
Federal law requires a written partnership agreement for a limited liability partnership. It is a false statement.
12. This is FALSE.
General partnerships have fewer disadvantages than limited liability partnerships. It is a false statement.
13. This is FALSE.
In a sole proprietorship, the partners have the burden of making all business decisions. It is a false statement.
14. This is FALSE.
Partnerships are subject to little government regulation. It is a false statement.
15. This is TRUE.
A limited partnership must have at least one general partner. It is a true statement.
16. This is TRUE.
The Articles of Partnership is a legal document that spells out each partner’s economic rights and responsibilities in the partnership. It is a true statement.
17. This is FALSE
In a partnership only the main partner contributes assets, or money and other valuables to the partnership. It is a false statement.
18. This is FALSE.
One of the advantages of franchises is centralized buying power. It is a false statement.
19. This is TRUE.
In a business franchise agreement, the parent company is called a franchiser. It is a true statement.
20. This is TRUE.
Management training and support is one of the advantage of franchises. It is a true statement.
21. This is TRUE.
Each person who owns stock is a part-owner of a corporation. It is a true statement.
22. This is TRUE.
A corporation has a legal identify separate from the identities of its owners. It is a true statement.
23. This is TRUE.
A corporation that has many shareholders who can buy or sell stock on the open market is called a publicly held corporation. It is a true statement.
24. This is FALSE.
A corporation that issues stocks to only a few people, often family members, who rarely trade their stock on the open market, is called a closely held corporation. It is a false statement.
25. This is TRUE.
Businesses that wish to incorporate must first file for a state license known as a Certificate of Incorporation, or Corporate Charter with state officials. It is a true statement.
26. This is TRUE.
Corporations are exempt from paying taxes on their income. It is a true statement.
27. This is FALSE.
Individual stockholders do not carry personal responsibility for the corporation’s actions. It is a false statement.
28. This is TRUE.
Multinational corporations must obey laws in each country in which they operate. It is a true statement.
29. This is TRUE.
A corporation can grow by selling stocks or bonds, merging, or
combining, with another corporation. It is a true statement.
30. This is FALSE.
Sole proprietorships are subject to little government regulations. It is a false statement.
