11) Which of the following statements is TRUE for a limited liability company?
A) Members have unlimited liability for the debts of the business.
B) Members have limited liability for the debts of the business.
C) Only the limited partners have limited liability for the debts of the business.
D) The general partner has unlimited liability for the debts of the business.
12) Which of the following statements is TRUE for a limited liability partnership?
A) The partners all have limited liability for the debts of the partnership.
B) The partners all have limited liability for the acts of the other partners.
C) The general partner has unlimited liability for the debts of the partnership.
D) The limited partners have unlimited liability for the debts of the partnership.
13) Which of the following statements is TRUE for a proprietorship?
A) Legally, a proprietorship is separate from the proprietor.
B) For accounting purposes, a proprietorship is separate from the proprietor.
C) For accounting purposes, a proprietorship is not separate from the proprietor.
D) A and B
14) Federal income taxes are paid by ________ in a limited liability company.
A) the company
B) limited partners only
C) general partners only
D) members
15) Which of the following statements is TRUE for a limited liability partnership?
A) The partnership pays no federal income taxes.
B) Only the limited partners pay federal income taxes on their shares of the partnership's profits.
C) Only the general partner pays federal income taxes on his or her share of the partnership's profits.
D) Only the members pay federal income taxes on their shares of the partnership's profits.
16) Which statement is TRUE about partnerships?
A) Legally, a partnership is separate from the partners.
B) A partnership has one capital account.
C) For accounting purposes, a partnership is separate from the partners.
D) For accounting purposes, a partnership is not separate from the partners.
17) Which of the following have unlimited liability for a company's debts?
A) owners of a corporation
B) members of a limited liability company
C) limited partners in a limited liability partnership
D) general partner in a limited liability partnership
18) Which of the following entities pays federal income taxes?
A) limited liability partnership
B) general partnership
C) limited liability company
D) corporation
19) The two types of accounting are:
A) profit and nonprofit.
B) financial and managerial.
C) internal and external.
D) bookkeeping and decision-oriented.
20) Decision makers who use accounting information include:
A) creditors.
B) the Internal Revenue Service.
C) the Securities and Exchange Commission.
D) all of the above.