MGMT 271 WWU Final exam with
answers
Business Organizations - ....🔰VERIFIED ANSWERS.... ✔✔the legally
recognized business form under which a business operates
Main factors for choosing business organizations - ....🔰VERIFIED
ANSWERS.... ✔✔1. legal status of the business with respect to ownership
2. creation
3. control & compensation
4. liability
5. taxation
6. duration
Sole Proprietorship - ....🔰VERIFIED ANSWERS.... ✔✔1. NO LEGAL
DISTINCTION BETWEEN BUSINESS AND OWNER (ON FINAL)
2. easy to create with few formalities. can be formed by an individual or
married couple. can own a name or trade name.
3. owner has complete control of business. compensation comes from profits.
4. liability is directly with the owner & is unlimited
5. owner is taxed on income generated
6. duration is until owner dies, retires or transfers ownership. debt remains
with owner, unless creditors agree to a release from liability
, Partnership - ....🔰VERIFIED ANSWERS.... ✔✔1. composed of 2 or more
persons who contribute money, labor & skill to a business. partners share
profits, losses & management of business. each partner is personally & equally
liable for debts of the partnership. (revised Uniform Partnership Act applies in
WA)
2. Partnership is a contractual relationship (3 methods of creating contracts
apply)
3. control is mutual & equal, absent an agreement of the contrary;
compensation is from profits, equally shared, absent an agreement of the
contrary
4. liability is joint & several for tort liabilities incurred in the scope of business.
contracts on behalf of the partnership bind the partners.
5. partners pay tax on income. the partnership entity is not taxed
6. duration may be fixed term or indefinite
Partnership contracts - ....🔰VERIFIED ANSWERS.... ✔✔- Express. Partners
expressly agree to form a partnership. Partnership agreement should be in
writing, but not required
- Impliedly. Two or more persons conduct business to meet definition of
partnership. Sharing profits is evidence of partnership
- Estoppel / apparent. When it appears that a person is a partner, whoever
created the apparent partner may be prevented from denying the partnership
relationship, if a third party reasonably and detrimentally relied on the
representation (you never dien a partnership was agreed upon)
Limited Partnership - ....🔰VERIFIED ANSWERS.... ✔✔1. limited partnership
is composed of one or more general or limited partners. general partners
manage business & share profits & losses. limited partners share profits of
answers
Business Organizations - ....🔰VERIFIED ANSWERS.... ✔✔the legally
recognized business form under which a business operates
Main factors for choosing business organizations - ....🔰VERIFIED
ANSWERS.... ✔✔1. legal status of the business with respect to ownership
2. creation
3. control & compensation
4. liability
5. taxation
6. duration
Sole Proprietorship - ....🔰VERIFIED ANSWERS.... ✔✔1. NO LEGAL
DISTINCTION BETWEEN BUSINESS AND OWNER (ON FINAL)
2. easy to create with few formalities. can be formed by an individual or
married couple. can own a name or trade name.
3. owner has complete control of business. compensation comes from profits.
4. liability is directly with the owner & is unlimited
5. owner is taxed on income generated
6. duration is until owner dies, retires or transfers ownership. debt remains
with owner, unless creditors agree to a release from liability
, Partnership - ....🔰VERIFIED ANSWERS.... ✔✔1. composed of 2 or more
persons who contribute money, labor & skill to a business. partners share
profits, losses & management of business. each partner is personally & equally
liable for debts of the partnership. (revised Uniform Partnership Act applies in
WA)
2. Partnership is a contractual relationship (3 methods of creating contracts
apply)
3. control is mutual & equal, absent an agreement of the contrary;
compensation is from profits, equally shared, absent an agreement of the
contrary
4. liability is joint & several for tort liabilities incurred in the scope of business.
contracts on behalf of the partnership bind the partners.
5. partners pay tax on income. the partnership entity is not taxed
6. duration may be fixed term or indefinite
Partnership contracts - ....🔰VERIFIED ANSWERS.... ✔✔- Express. Partners
expressly agree to form a partnership. Partnership agreement should be in
writing, but not required
- Impliedly. Two or more persons conduct business to meet definition of
partnership. Sharing profits is evidence of partnership
- Estoppel / apparent. When it appears that a person is a partner, whoever
created the apparent partner may be prevented from denying the partnership
relationship, if a third party reasonably and detrimentally relied on the
representation (you never dien a partnership was agreed upon)
Limited Partnership - ....🔰VERIFIED ANSWERS.... ✔✔1. limited partnership
is composed of one or more general or limited partners. general partners
manage business & share profits & losses. limited partners share profits of
