mie 201 exam 2 questions and answers 100% pass

mie 201 exam 2 questions and answers 100% pass Advantages of operating a Sole Proprietorship? - Correct Answer ️️ -simplicity (easy to establish and less paperwork-only requirement is business licenses and permit) single layer of taxation!!! privacy (not required to report anything to anyone) flexibility and control fewer limitations on personal income Personal satisfaction (take your own risks and enjoy the reward) Disadvantages of sole proprietorship - Correct Answer ️️ -financial liability (unlimited liability) demands of the owner (alot more than picking your work schedule.. alot of decisions are in your hands) limited managerial perspective resource limitation no employee benefits for the owner finite life span (owners death may be the demise of the business) what limits a sole proprietors ability to expand? - Correct Answer ️️ -resource limitation Partnerships - Correct Answer ️️ -a company that is owned by two or more people but is not a corporation; appropriate for firms that need more resources and leadership talent but do not need fundraising capabilites General partnership - Correct Answer ️️ -all partners have JOINT AUTHORITY to make decisions and JOINT LIABILITY for the firms financial obligations (if a partnership gets sued or goes bankrupt ALL the partners to dig into their own pockets to pay the bills, like a sole proprietorship) Limited partnership - Correct Answer ️️ -minimize personal liability exposure; one or more persons act as GENERAL PARTNERS who run the business and have the same UNLIMITED liability as sole proprietors ; remaining owners are limited partners who do not participate in running the business & have limited liability Limited liability - Correct Answer ️️ -the max amount they are liable for is whatever amount each invested in the business master limited partnership (MLP) - Correct Answer ️️ -allowed to raise money by selling UNITS of ownership to the general public, in the same way corporations sell shares of stock to the public--this gives fundraising capabilities WITHOUT double taxation disadvantage limited liability partnership (LLP) - Correct Answer ️️ -form of business was created to help protect individual partners in certain professions from major mistakes by other partner in the firm; each partner has UNLIMITED LIABILITY for the partnership as a whole Advantages of Partnerships - Correct Answer ️️ -simplicity single layer of taxation more resources cost sharing broader skill and experience base longevity (increase chances the organization will endure because new partners be drawn into the business to replace those who die or retire) disadvantages of partnerships - Correct Answer ️️ -unlimited liability (unless LLP) potential for conflict (more bosses= more disagreement) expansion, succession, and termination issues ( business plan? consider how to handle issues) Partnership agreement - Correct Answer ️️ -if carefully written, it can maximize the advantages of the partnership structure and minimize the potential disadvantages At the very minimum a partnership agreement should address: - Correct Answer ️️ - investment percentage, profit-sharing percentages, mana