MIE 201 Exam 2 question with 100% correct answers 2023/2024

MIE 201 Exam 2 Sole proprietorships - correct answer businesses owned and operated by one individual, are the most common form of business organization in the United States. Common examples include many retailers such as restaurants, hair salons, flower shops, dog kennels, and independent grocery stores. sole proprietorship - correct answer All profits from a _________ belong exclusively to the owner. He or she does not have to share them with any partners or stockholders. The owner decides how to use the funds—for expansion of the business, for salary increases, for travel to purchase additional inventory, or to find new customers. Partnership - correct answer "an association of two or more persons who carry on as co-owners of a business for profit." they are the least used form of business. They are typically larger than sole proprietorships but smaller than corporations. general partnership - correct answer involves a complete sharing in the management of a business. In a ______________, each partner has unlimited liability for the debts of the business. Professionals such as lawyers, accountants, and architects often join together in general partnerships. limited partnership - correct answer has at least one general partner, who assumes unlimited liability, and at least one limited partner, whose liability is limited to his or her investment in the business. ______________ exist for risky investment projects where the chance of loss is great. The general partners accept the risk of loss; the limited partners' losses are limited to their initial investment. Limited partners do not participate in the management of the business but share in the profits in accordance with the terms of a partnership agreement Articles of partnership - correct answer are legal documents that set forth the basic agreement between partners. Most states require articles of partnership, but even if they are not required, it makes good sense for partners to draw them up. Articles of partnership usually list the money or assets that each partner has contributed (called partnership capital), state each partner's individual management role or duty, specify how the profits and losses of the partnership will be divided among the partners, and describe how a partner may leave the partnership as well as any other restrictions that might apply to the agreement.