BUSINESS LAW

1. What is the main difference between Chapters 7 and 11?

a. The continued operation of a business

b. The order for relief.

c. The automatic stay.

d. The manner in which the bankruptcy petition is filed.

2. Which of the following is not a purpose of bankruptcy?

a. Punish the debtor.

b. Prevent creditors from gaining an unfair advantage over one another.

c. Create a way for creditors to recover the debt.

d. Offer a fresh start to the debtor.

3. Which of the following is true about a sole proprietorship?

a. The owner must file a tax return on behalf of the business.

b. It is subject to corporate income tax.

c. The owner reports income and expenses on the owners own tax return.

d. Sole proprietorships face double taxation.

3. A limited partnership requires

a. at least two limited partners.

b. at least two general partners.

c. a written limited partnership agreement.

d. at least one general and one limited partner.