MGMT 254 FINAL EXAM UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS

MGMT 254 FINAL EXAM UPDATED ACTUAL QUESTIONS
AND CORRECT ANSWERS

Question:
1. types of business organizations
Answer:
sole proprietorship partnerships, LLPs, and LLCs corporations joint ventures unincorporated associations
cooperatives franchises

Question:
2. sole propreitorships
Answer:
most common business form

Question:
3. advantages of sole proprietorship
Answer:
no organizational costs owner has complete control income taxed ONLY at personal level

Question:
4. Disadvantages of Sole Proprietorship
Answer:
unlimited personal liability for owner business ends upon death of owner

Question:
5. partnerships
Answer:
voluntary combination of two or more "general partners" operating a business as co-owners for a profit

Question:
6. advantages of partnerships
Answer:
No or low organizational costs
Combines talents and resources of multiple persons
Income taxed at partner's personal level only

Question:
7. disadvantages of partnerships
Answer:
Unlimited personal liability of partners (partners are jointly liable for contracts of the partnership and
jointly and severally liable for torts of the partnership)
Dissolution upon death or withdrawal of a partner Partner must give notice or withdrawal to other partners
and third parties to avoid continuing liability for partnership debts

, Question:
8. fact determination
Answer:
Existence of partnership is a ______ _________________ and not dependent on the intent of the parties

Question:
9. written partnership agreement
Answer:
not required, but a good idea look first to this when determining rights and obligations of the partners if
this doesn't cover an issue, you look to the UPA or RUPA

Question:
10. tenancy in partnership
Answer:
partnership property is owned in ______ ____ _____________

Question:
11. rights of a partnership
Answer:
participate in management inspect books share in profits repayment of loans with interest contribution and
indemnity distribution of capital upon dissolution

Question:
12. duties of partnership
Answer:
loyalty, good faith, obedience

Question:
13. assignment of partner's interest
Answer:
only results in assignee having right to share in profits and capital upon dissolution, unless partners
unanimously consent to assignee as a new full partner

Question:
14. limited partnerships (LPs)
Answer:
requires at least one general partner and at least one limited partner, a certificate of limited partnership
filed with appropriate authority and must use LP or limited partnership in name

Question:
15. general partners
Answer:
have the right to manage/control LP and are personally liable for debts of LP

Question:
16. limited partners