BULW 3310 Exam 3 Questions and Correct Detailed Answers (Verified Answers

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BULW 3310 Exam 3 Questions and Correct
Detailed Answers (Verified Answers)
Question: the simplest form of business organization in which the

owner is the business.


Ans: sole proprietorship



Question: which business structure is the easiest and least costly to

create?


Ans: sole proprietorship



Question: what is a con of a sole proprietorship?


Ans: Unlimited liability for debts and torts



Question: what is a pro of a sole proprietorship?


Ans: taxes on personal income, own boss, easy to create



Question: an agreement by two or more persons to carry on, as co-

owners, a business for profit.


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Ans: partnership



Question: applies if you don't have your own agreement


Ans: uniform partnership act



Question: the owners pay taxes on their personal income


Ans: passed through entity



Question: A pro of partnership is what?


Ans: passed through entity



Question: What is a con of partnership?


Ans: each partner has unlimited liability



Question: Partners are agents of each other so are liable for each

others torts and contracts regardless of whether they participated

in or even knew about the conduct giving rise to the lawsuit


Ans: unlimited liability



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Question: Sets forth rights and obligations of the parties


Ans: operating agreement(articles of partnership)



Question: withdrawal of a partner


Ans: dissociation



Question: take all of your partnership profits and losses and

liquidate everything; partnership ends.


Ans: dissolution



Question: The death, bankruptcy or withdrawal of a partner

(dissociation) can trigger what?


Ans: dissolution



Question: the process of collecting, liquidating and distributing the

P/S assets


Ans: winding up



Question: what agreements should be created in a partnership?
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