CBAD 344 Final Exam questions n
verified answers
entrepreneur= - correct answer ✔✔one who initiates and assumes the financial risk of a new business
enterprise and undertakes to provide or control its management
what is an entrepreneurs primary motive? - correct answer ✔✔to make profits
4 factors in choosing a form of business organization - correct answer ✔✔1. ease of creation
2. the liability of the owners
3. tax considerations
4. the ability to raise capital
3 major forms to structure business enterprises - correct answer ✔✔1. the sole proprietorship
2. the partnership
3. the corporation
what is the simplest form of a business? - correct answer ✔✔sole proprietorship
sole proprietorship= - correct answer ✔✔the owner is the business
what kind of taxes does a sole proprietorship pay? - correct answer ✔✔personal income taxes
what kind of liability does a sole proprietorship have? - correct answer ✔✔unlimited liability
2 most common forms of business operation by two or more persons - correct answer ✔✔1. partnership
2. corporation
,partnership= - correct answer ✔✔an agreement by two or more persons to carry on, as co-owners, a
business for profit
partners have ______________ control over operation and the right to share profits - correct answer
✔✔joint
partnerships are governed by ___________________ law and ________________________ law - correct
answer ✔✔common; statutory
3 essential elements to determine whether a partnership exists - correct answer ✔✔1. sharing of profits
and losses
2. joint ownership of the business
3. equal right to be involved in the management of the business
pass through entity= - correct answer ✔✔a business entity that has no tax liability
income is passed through to the owners, owners pay personal income tax
information return= - correct answer ✔✔a tax return submitted by a partnership that reports the
business's income and losses
articles of partnership= - correct answer ✔✔a written agreement that sets forth each partner's rights
and obligations with respect to the partnership
partnership for a term= - correct answer ✔✔a partnership that is specifically limited in duration
partnership at will= - correct answer ✔✔a partnership with no fixed duration specified
partnership by estoppel= - correct answer ✔✔a partnership imposed by a court when non-partners have
held themselves out to be partners and others have detrimentally relied on their misrepresentations
, 6 rights of partners - correct answer ✔✔1. management
2. interest
3. compensation
4. inspection of books
5. accounting
6. property
charging order= - correct answer ✔✔in partnership law, an order granted by a court to a judgment
creditor that entitles the creditor to attach a partner's interest in the partnership
duties and liabilities of partners are derived from __________________ law - correct answer ✔✔agency
2 partner fiduciary duties - correct answer ✔✔1. duty of care
2. duty of loyalty
partnership liability is ______________________ - correct answer ✔✔unlimited
joint liability= - correct answer ✔✔in partnership law, the partners shared liability for partnership
obligations and debts
joint and several liability= - correct answer ✔✔in partnership law, a doctrine under which a plaintiff may
sue, and collect a judgment from, all the partners together or one or more of the partners separately
dissociation= - correct answer ✔✔the severance of the relationship between a partner and a partnership
dissociation terminates the partners ___________________ authority - correct answer ✔✔actual
buyout price= - correct answer ✔✔the amount payable to a partner on their dissociation from a
partnership, based on the amount distributable to that partner if the firm were wound up on that date,
and offset by any damages for wrongful dissociation
verified answers
entrepreneur= - correct answer ✔✔one who initiates and assumes the financial risk of a new business
enterprise and undertakes to provide or control its management
what is an entrepreneurs primary motive? - correct answer ✔✔to make profits
4 factors in choosing a form of business organization - correct answer ✔✔1. ease of creation
2. the liability of the owners
3. tax considerations
4. the ability to raise capital
3 major forms to structure business enterprises - correct answer ✔✔1. the sole proprietorship
2. the partnership
3. the corporation
what is the simplest form of a business? - correct answer ✔✔sole proprietorship
sole proprietorship= - correct answer ✔✔the owner is the business
what kind of taxes does a sole proprietorship pay? - correct answer ✔✔personal income taxes
what kind of liability does a sole proprietorship have? - correct answer ✔✔unlimited liability
2 most common forms of business operation by two or more persons - correct answer ✔✔1. partnership
2. corporation
,partnership= - correct answer ✔✔an agreement by two or more persons to carry on, as co-owners, a
business for profit
partners have ______________ control over operation and the right to share profits - correct answer
✔✔joint
partnerships are governed by ___________________ law and ________________________ law - correct
answer ✔✔common; statutory
3 essential elements to determine whether a partnership exists - correct answer ✔✔1. sharing of profits
and losses
2. joint ownership of the business
3. equal right to be involved in the management of the business
pass through entity= - correct answer ✔✔a business entity that has no tax liability
income is passed through to the owners, owners pay personal income tax
information return= - correct answer ✔✔a tax return submitted by a partnership that reports the
business's income and losses
articles of partnership= - correct answer ✔✔a written agreement that sets forth each partner's rights
and obligations with respect to the partnership
partnership for a term= - correct answer ✔✔a partnership that is specifically limited in duration
partnership at will= - correct answer ✔✔a partnership with no fixed duration specified
partnership by estoppel= - correct answer ✔✔a partnership imposed by a court when non-partners have
held themselves out to be partners and others have detrimentally relied on their misrepresentations
, 6 rights of partners - correct answer ✔✔1. management
2. interest
3. compensation
4. inspection of books
5. accounting
6. property
charging order= - correct answer ✔✔in partnership law, an order granted by a court to a judgment
creditor that entitles the creditor to attach a partner's interest in the partnership
duties and liabilities of partners are derived from __________________ law - correct answer ✔✔agency
2 partner fiduciary duties - correct answer ✔✔1. duty of care
2. duty of loyalty
partnership liability is ______________________ - correct answer ✔✔unlimited
joint liability= - correct answer ✔✔in partnership law, the partners shared liability for partnership
obligations and debts
joint and several liability= - correct answer ✔✔in partnership law, a doctrine under which a plaintiff may
sue, and collect a judgment from, all the partners together or one or more of the partners separately
dissociation= - correct answer ✔✔the severance of the relationship between a partner and a partnership
dissociation terminates the partners ___________________ authority - correct answer ✔✔actual
buyout price= - correct answer ✔✔the amount payable to a partner on their dissociation from a
partnership, based on the amount distributable to that partner if the firm were wound up on that date,
and offset by any damages for wrongful dissociation
