Twenty young entrepreneurs decide they want to start a dating service; however, they do not want to be held personally liable for losses of the company. They want to avoid double taxation. Which type of business organization would best fit their needs?
A) Corporation
B) LLC
C) Partnership
D) Closed corporation
E) Limited cooperative
Question 2 - A sequence of organizations that directs a product from the producer to the ultimate user is called a(n):
A) intermediary network.
B) catalog discount showroom.
C) transporter.
D) channel of distribution.
E) distributorship.
Question 3 - Judy, Betty, and Bob want to limit liability for their business debts, but they want to avoid double taxation. Which type of business ownership would you recommend?
A) Regular corporation
B) General partnership
C) Sole proprietorship
D) LLC
E) Not-for-profit corporation
Question 4 - HVAC producers such as Trane and Tempstar likely use ______________ distribution, as their products are shipped to many different retail stores and independent HVAC contractors.
A) agent to wholesaler to retailer
B) consumer direct
C) retail
D) two-step
E) three-step
Question 5 - What does corporate taxation mean?
A) Companies must pay taxes on their income, and then employees must pay taxes on their salaries and wages.
B) Companies have to pay both sales taxes and income taxes.
C) Companies must pay taxes on their earnings, and then stockholders pay taxes on their dividends.
D) Suppliers tax their customers, and in turn these businesses tax the ultimate consumer.
E) Companies must pay taxes on corporate income and then they pay additional taxes on distributions of profit to stockholders.
Question 6 - Suppose you have been making your own soaps and lotions and selling them to friends and family. You would really like to expand your company and be able to sell your items in retail stores across the United States. Which is likely the best distribution channel for you to pursue?
A) Consumer direct
B) Retail channel
C) Agent to wholesaler to retail channel
D) Two-step distribution
E) USPS
Question 7 - The form of business organization that experiences double taxation is the:
A) partnership.
B) corporation.
C) venture company.
D) syndicated partnership.
E) sole proprietorship.
Question 8 - Apple products are sold in Apple's retail stores and in other retail stores such as Best Buy and Target. Which types of distribution channels to Apple use?
A) Consumer direct and retail distribution
B) Retail and two-step distribution
C) Retail and agent to wholesaler to retailer distribution
D) Two-step and agent to wholesaler to retailer distribution
E) Consumer direct and two-step distribution
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