Question

T or F

Question 6: an accurate statement is :" business law establishes ethical behavior."

Question 7: all partners in a genaral partnership have limited liability for the debts of their firm.

Question 8: in order to establish a C corporation, it is a requirement that investors run the company, whereas in an S corporation, this is not the case.

Question 9: the two primary concerns of an entrepreneur starting a new business are planning and record keeping.

Question 10: supervisory managers are those who directly oversee the activities of workers and evaluate their daily performance.

Answer 1

6) Solution: False

Explanation: Ethics may go far beyond legality

7) Solution: False

Explanation: In general partnership all partners holds unlimited liability for company's debts

8) Solution: False

Explanation: The investors elect the Board of Directors in C corporation who further appoints the managerial team. It is not a requirement that investors run the company. Similarly S corporations also have directors, stockholders and employees.

9) Solution: False

Explanation: Planing and financing are two primary concerns of an entrepreneur starting a new venture

10) Solution: True

Explanation: Supervisors directly oversee the activities of eployees and evaluate their performance on daily basis