1) A major disadvantage of a partnership is that partners may disagree on how to

Question

1)
A major disadvantage of a partnership is that partners may disagree on how to operate the business and divide the profits.
True
False

2)
Liability is a major issue in the formation and type of ownership of a new business enterprise.
True
False

3)
Choosing the right form of business ownership will give the owner everything he or she desires.
True
False

4)
In a partnership one partner can be sued for unpaid debts incurred by another partner.
True
False

5)
A major problem with partnerships is limited liability. Each partner is personally liable for his or her own actions, but not for the actions of all the partners.
True
False

6)
The most important benefit of incorporation is the continuity to which shareholders are exposed.
True
False
7)
Entrepreneurs typically stay their charted courses rather than cater to changing situations.
True
False

8)
The process of organizing activities into clusters of related tasks that can be handled by certain individuals is called specialization.
True
False

Explanation / Answer

1.)T 2.)T 3.)F 4.)T 5.)T 6.)T 7.)F 8.)T

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