With regard to taxation of partnerships, which of the following statements is correct?
A) Profits are taxed twice.
B) Each partner is taxed in the same way as a sole proprietor.
C) Taxes are paid on a partnership's profits, after which each partner pays taxes on his or her share of the profits.
D) A partnership is exempt from taxes.
E) The partnership is taxed as a separate entity.
Question 2 - If the liabilities of a business are 85,000 and the owners' equity is 110,000, which of the following is a correct statement?
A) Assets equal 25,000.
B) Assets equal 195,000.
C) Assets equal 110,000.
D) Assets equal 85,000.
E) It is impossible to determine the value of the assets.
Question 3 - Frederick W. Taylor's research led to the emergence of scientific management, which is defined as
A) eliminating waste and inefficiency at work.
B) the application of scientific principles to the management of work and workers.
C) researching optimal tools for motivating employees.
D) using the workplace to conduct scientific research on human behavior.
E) the study of management using a scientific approach.
Question 4 - Marion has an innovative idea for better disposal of garbage. Hence, he starts a business to implement this idea that he believes will succeed. He is also aware of the risks involved in starting the business. However, Marion tends to put in only six hours a day into building his business; some days, he finds it difficult to put in any time. Which of the following entrepreneurial characteristics does Marion lack?
A) Energy
B) Confidence
C) Tolerance of uncertainty
D) Vision
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