BADM 300 Exam 1 Questions with Correct Answers

BADM 300 Exam 1 Questions with Correct Answers


Question 1:
Sole Proprietorship/ General Partnership
Answer:
Default method of doing business, one or more person



Question 2:
engaged in business for profit, no formation costs, unlimited personal liability General
Partnerships
Answer:
Profits flow through all partners, all are taxed, every partner is responsible for all debt



Question 3:
Rights of Partners
Answer:
1. Right to manage



Question 4:
4. Right to be repaid
NO RIGHT OF COMPENSATION
Duties of Partners
Answer:
1. Duty of loyalty (no self-interested decisions)



Question 5:
4. Duty to informLimited Liability Partnership-The business itself takes on liability-Exactly a
general partnership, but no personal liability
Answer:
-Must file with secretary of state-Limited to certain industries

, Question 6:
Limited Partnership



Answer:
-Limited partners aren't liable but can't manage-General partners are liable and can manage



Question 7:
Limited Liability Limited Partnership
Answer:
Very rare, exactly like LP but general partners aren't liable



Question 8:
Vernon V. Schuster
Answer:
Can a son be liable for promise made by his dad both of whom operated a



Question 9:
sole proprietorship under the same name?-NoZuckerman V. Antenucci
Answer:
Is one doctor liable for the malpractice of his partner?-Yes



Question 10:
4. Duty to inform
Limited Liability Partnership
-The business itself takes on liability
-Exactly a general partnership, but no personal liability
Answer:
-Must file with secretary of state



Question 11:
-Limited to certain industries sole proprietorship under the same name?
-No
Zuckerman V. Antenucci