LGS Exam questions with 100% correct
answers A+ rated
Sole proprietorship method of creation - correct answer ✔✔Created at will by owner.
Sole proprietorship Legal Position - correct answer ✔✔Not a separate entity; owner is the business.
Sole proprietorship liability - correct answer ✔✔Unlimited liability.
Sole proprietorship Duration - correct answer ✔✔Determined by owner; automatically dissolved on
owner's death.
Sole proprietorship Transferability of Interest - correct answer ✔✔Interest can be transferred, but
individual's proprietorship then ends.
Sole proprietorship Management - correct answer ✔✔Completely at owner's discretion.
Sole proprietorship Taxation - correct answer ✔✔Owner pays personal taxes on business income.
Partnership Method of Creation - correct answer ✔✔Created by agreement of the parties.
Partnership Legal Position - correct answer ✔✔A general partnership is a separate legal entity in most
states.
Partnership Liability - correct answer ✔✔Unlimited liability.
Partnership Duration - correct answer ✔✔Terminated by agreement of the partners, but can continue to
do business even when a partner dissociates from the partnership.
answers A+ rated
Sole proprietorship method of creation - correct answer ✔✔Created at will by owner.
Sole proprietorship Legal Position - correct answer ✔✔Not a separate entity; owner is the business.
Sole proprietorship liability - correct answer ✔✔Unlimited liability.
Sole proprietorship Duration - correct answer ✔✔Determined by owner; automatically dissolved on
owner's death.
Sole proprietorship Transferability of Interest - correct answer ✔✔Interest can be transferred, but
individual's proprietorship then ends.
Sole proprietorship Management - correct answer ✔✔Completely at owner's discretion.
Sole proprietorship Taxation - correct answer ✔✔Owner pays personal taxes on business income.
Partnership Method of Creation - correct answer ✔✔Created by agreement of the parties.
Partnership Legal Position - correct answer ✔✔A general partnership is a separate legal entity in most
states.
Partnership Liability - correct answer ✔✔Unlimited liability.
Partnership Duration - correct answer ✔✔Terminated by agreement of the partners, but can continue to
do business even when a partner dissociates from the partnership.
