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1. Which of the following is most likely to have unlimited liability?
a. silent shareholder
b. general
partner
c. limited liability partner
d. unlimited shareholder
2. Which of the following is NOT an advantage of a partnership?
a. One partner can make decisions that bind all other partners.
b. Risk can be shared.
c. It is easy to set up.
d. Partnerships involve few legal requirements.
3. Which of the following statements is CORRECT?
a. The cooperative is a special form of the partnership structure.
b. Profit sharing plans are available to corporations, sole proprietorships and
partnerships.
c. If a start-up business is incorporated, a bank will normally require personal
guarantees on any business loans.
d. In a limited partnership, each partner has a hand in managing the business.
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