Multiple choice

1. Certain entities don't pay taxes; instead, the owners report their share of the entity's income on their own personal income tax return. These entities are
A. limited liability corporations, S corporations, and D corporations.
B. corporations.
C. S corporations, LLCs, partnerships, sole proprietorships, and nonprofit corporations.
D. S corporations, LLCs, partnerships, and sole proprietorships.

2. The Uniform Partnership Act, or UPA, is a
A. model statute that states have adopted that provides rules on how general partnerships are run.
B. model federal law governing the creation and operation of partnerships, identical to the federal law governing the creation and operation of corporations.
C. uniform act that replaces partnership agree

3. Gina gets an offer from Tim, a nonshareholder, to buy her stock. The shareholder agreement contains a right of first refusal provision. Gina must
A. refuse to sell the stock to any outsider including Tim.
B. obtain a fair appraisal and charge Tim full market value for the stock.
C. first offer the stock to the existing shareholders.
D. not sell, but only if the sale is due to bankruptcy or divorce.

4. Businesses in which the owners' personal assets aren't generally at risk include
A. corporations.
B. general partnerships.
C. general partnership and sole proprietorships.
D. franchises.