Income from a single proprietorship is distributed to the owner in the form of a dividend.

You are watching: Which of the following is true of a sole proprietorship?

A single proprietorship is a firm owned by two or much more individuals.

The income from a sole proprietorship is taxation on the owner"s an individual income tax return.

The owner"s legal responsibility is minimal to the amounts invested in the business.

2. Corporations space ________.

for-profit businesses only

exempt from legal liability

owned by shareholders

manufacturers and not service organizations

3. Disadvantages of the corporate kind of service organization include ________.

separation that ownership and also management

limited liability for shareholders

double taxation

two or an ext of these

4. A manufacturing service ________.

provides solutions to the customers

buys goods for resale

makes the commodities it sells

will loan money to customers

5. Team Shirts, Inc. Payment $5,000 cash because that T-shirts indigenous a supplier. This transaction ________.

causes an increase in total assets

is a financing activity

is one investing activity

is an operation activity

6. Revenues incorporate ________.

the amount got from borrowing

the quantity earned from providing goods come customers

the lot earned from providing services to customers

two or much more of these

7. Team Shirts, Inc. Payment $600 because that insurance. This transaction ________.

causes total liabilities to increase and retained revenue to decrease

is an operating activity

is an investing activity

causes complete assets to increase and also total legal responsibility to increase

8. The explain of cash flows ________.

shows the transforms that took place in the lot of shareholders" equity throughout a period

is a perform of all the cash accumulated and cash paid during a period

is a summary of all of the profits minus all of the expenses for an audit period

describes the financial situation of a firm at a specific point in time

9. Wok N Roll, Inc. Reflects $300,000 that assets and $60,000 of shareholders" same on its balance sheet. Liabilities have to equal ________.

$360,000

$240,000

$300,000

$60,000

10. Team Shirts, Inc. Repays a $2,000 loan. This transaction ________.

causes complete liabilities come decrease

causes full assets to increase

causes complete shareholders" equity to increase

is an investing activity

11. On march 1, Team Shirts had actually a start balance in retained earnings of $1,200. Throughout March, Team Shirts paid $200 in dividends and also had net income of $2,000. The march 31 balance in retained earnings was ________.

$3,400

$3,200

$1,200

$3,000

12. Dividends room ________.

the same as expenses

owners" contribute to the firm

a palliation in maintained earnings

another term for each partner"s share of cooperation income

13. To compare balance sheets ________.

include gross profit and also operating income

report earnings for both the current and previous years

report financial ratios because that the current year which are contrasted to the former year"s

include balances of 2 consecutive years

14. Gaue won services carriers ________.

deal in services concerned money

lend money to consumer to pay for cars and also houses

sell insurance money to your customers

All that these room correct.

15. The owners of a corporation are referred to as ________.

partners

shareholders

stockholders

two or more of these

16. I beg your pardon of the complying with is true about a corporation?

Each separation, personal, instance shareholder has individual legal duty for the corporation"s actions.

Managers that corporations deserve to be held responsible because that the plot of the corporation.

Corporations room exempt indigenous taxes; however, the shareholders are required to salary taxes on dividends received.

Corporations must have a minimum of 2 or an ext shareholders.

17. The stock industry is ________.

where the IRS is located

located in new York City

the general term provided to describe all stock exchanges

where businesses end up being incorporated

18. A business kind in i m sorry the partners room not personal liable for the malpractice of any type of of the various other partners is referred to as a ________.

See more: Here'S Why Fans Hate Fox Broadcaster Joe Buck Ring On Middle Finger

partnership

modified single proprietorship

limited liability partnership

corporation

19. Dell Inc."s circulation of earnings to owner is dubbed dividends. Dell must be a ________.