BA 100 MOD 7 -Exam Questions With Correct Answers

BA 100 MOD 7 -Exam Questions With Correct Answers Continuity or transferability, risk tolerance, cost of start up, control vs. responsibility, profits, taxation, entrepreneurial ability, financing and are each: - answerfactors to consider when choosing an organizational type Gloria is starting a business. She must consider the tax implications when choosing a form of ownership because ________. - answerDifferent forms of business ownership result in businesses and owners being taxed differently. It is important to understand these difference so that she can choose the scenario that best fits her needs. Which of the following is a characteristic of a sole proprietorship? - answerenjoys complete control over all aspects of the business When it comes to taxes, which statement fits best with a sole proprietorship business? - answersimple. low rates What is the correct definition of a partnership? - answera single business in which two or more people share ownership. If a business has its liability, management duties, and profits equally divided among its partners, what type of partnership is it? - answergeneral partnership If you were advising a friend about setting up a partnership, which of the following characteristics are advantages of partnerships when compared with sole proprietorships? - answerpartners bring diverse skills and perspectives Carol and her friends are creating a new company that ships monthly subscription boxes filled with beauty products to customers. Carol has multiple partners and she wants to avoid both double taxation and personal liability at the same time. In addition, she wants to pay the partners based on their company ownership percentage. Carol can accomplish her goals by forming what type of business entity? - answerS corporation If a business has both the focus and ability to maximize profits for shareholders, but also seeks after a broader mission without maximizing shareholder profits, what type of business entity is it most likely to be? - answerB corporatio