WGU D432 EXAM (SECTION 1 UPDATED
2025) |GUARANTEED ACCURATE
ANSWERS
Difference between Value Based and Regulatory ethical behavior -
ACCURATE ANSWERS✔✔ value-based ethical behavior is
implementing a policy that provides accommodations for employees
volunteering at a local nonprofit. An example of regulatory ethical
behavior is implementing a policy that protects sensitive customer data.
Describe the disadvantages of sole proprietorships - ACCURATE
ANSWERS✔✔ 1. Unlimited liability (business owner becomes
responsible for all debt company incurs)
2. Difficulty raising capital. Business assets are unprotected against
claims of personal creditors, so business lenders view so proprietorships
as high risk due to the owners unlimited liability.
3. Limited managerial expertise.
4. Trouble finding qualified employees due to lack of benefits, growth
and pay compared to larger corps
5. Personal time commitment.
6. Losses are the owners responsibility.
7. Unstable business life.
,List the advantages of sole proprietorships - ACCURATE
ANSWERS✔✔ 1. Easy and inexpensive to form
2. Few legal requirements
3.Profits all go to the owner
4. Direct control of business - all business decisions are made by the sole
proprietorship owner without having to consult anyone
What are some important elements of the partnership agreement? -
ACCURATE ANSWERS✔✔ Includes name of partnership, duties of
each partner, compensation structure, outlines duties and responsibilities,
provisions, for the addition of new partners, the sale of partnership
interest, and procedures for resolving conflicts, dissolving the business,
and distributing the assets
List the advantages of partnerships - ACCURATE ANSWERS✔✔ 1.
ease of formation, partnerships are easy to form.
2. Availability of capital
3. Flexibility.
4. Diversity of skills and expertise.
5. Relative freedom from government control.
6. No special taxes (partnerships pay no income taxes)
Describe the disadvantages of partnerships - ACCURATE
ANSWERS✔✔ 1. Unlimited liability - all general partners have
unlimited liability for the deaths of the business.
,2. Potential for conflict between partners.
3. Difficulty exiting or dissolving partnership.
4. Complexity of profit sharing.
What is a General Partnership - ACCURATE ANSWERS✔✔ All
partners share in the management and profits they co-the assets, and can
each act on behalf of the firm. Each partner has unlimited liability for all
the business obligations.
What is a limited partnership? - ACCURATE ANSWERS✔✔ Has two
or more partners - one or more general partners who have unlimited
liability and one or more limited partners whose liability is limited to the
amount they invested
What is a limited liability partnership or LLP? - ACCURATE
ANSWERS✔✔ Similar to general partnership, except the partners are
not held responsible for business debt, and liabilities
What characteristics are associated with a corporation? - ACCURATE
ANSWERS✔✔ Legal entity, subject to the laws of states in which it is
formed, were the right to operate as a business is issued by state charter.
Corporations can own property, enter into contracts, Sue, and be sued
and engage in business operations under the terms of of each charter,
they are taxable entities and owners are not personally liable for its debt.
, List the five main steps for incorporation - ACCURATE ANSWERS✔✔
1. Select the companies
2. Writing articles of incorporation and filing them with the appropriate
state office, usually the secretary of state.
3. Pay required fees and taxes.
4. Hold an organizational meeting
5. Adopt bylaws, elect directors, and pass the first operating resolutions.
List the articles of incorporation components that are consistent among
all states - ACCURATE ANSWERS✔✔ 1. Name of corporation.
2. List of companies goals.
3. Types of stock and number of shares of each type to issue.
4. Life of the corporation.
5. Minimum investments by owners.
6. Methods for transferring shares of stock.
7. Address of the corporate office.
8. Name and addresses of the first board of directors.
What are the three components of a corporations organizational
structure? - ACCURATE ANSWERS✔✔ Stockholders - (or
shareholders) are the owners of a corporation, holding shares of stock
that provide them with certain rights. They may receive a portion of the
corporation's profits in the form of dividends, and they can sell or
transfer their ownership in the corporation (represented by their shares
of stock) at any time. Stockholders can attend annual meetings, elect the
2025) |GUARANTEED ACCURATE
ANSWERS
Difference between Value Based and Regulatory ethical behavior -
ACCURATE ANSWERS✔✔ value-based ethical behavior is
implementing a policy that provides accommodations for employees
volunteering at a local nonprofit. An example of regulatory ethical
behavior is implementing a policy that protects sensitive customer data.
Describe the disadvantages of sole proprietorships - ACCURATE
ANSWERS✔✔ 1. Unlimited liability (business owner becomes
responsible for all debt company incurs)
2. Difficulty raising capital. Business assets are unprotected against
claims of personal creditors, so business lenders view so proprietorships
as high risk due to the owners unlimited liability.
3. Limited managerial expertise.
4. Trouble finding qualified employees due to lack of benefits, growth
and pay compared to larger corps
5. Personal time commitment.
6. Losses are the owners responsibility.
7. Unstable business life.
,List the advantages of sole proprietorships - ACCURATE
ANSWERS✔✔ 1. Easy and inexpensive to form
2. Few legal requirements
3.Profits all go to the owner
4. Direct control of business - all business decisions are made by the sole
proprietorship owner without having to consult anyone
What are some important elements of the partnership agreement? -
ACCURATE ANSWERS✔✔ Includes name of partnership, duties of
each partner, compensation structure, outlines duties and responsibilities,
provisions, for the addition of new partners, the sale of partnership
interest, and procedures for resolving conflicts, dissolving the business,
and distributing the assets
List the advantages of partnerships - ACCURATE ANSWERS✔✔ 1.
ease of formation, partnerships are easy to form.
2. Availability of capital
3. Flexibility.
4. Diversity of skills and expertise.
5. Relative freedom from government control.
6. No special taxes (partnerships pay no income taxes)
Describe the disadvantages of partnerships - ACCURATE
ANSWERS✔✔ 1. Unlimited liability - all general partners have
unlimited liability for the deaths of the business.
,2. Potential for conflict between partners.
3. Difficulty exiting or dissolving partnership.
4. Complexity of profit sharing.
What is a General Partnership - ACCURATE ANSWERS✔✔ All
partners share in the management and profits they co-the assets, and can
each act on behalf of the firm. Each partner has unlimited liability for all
the business obligations.
What is a limited partnership? - ACCURATE ANSWERS✔✔ Has two
or more partners - one or more general partners who have unlimited
liability and one or more limited partners whose liability is limited to the
amount they invested
What is a limited liability partnership or LLP? - ACCURATE
ANSWERS✔✔ Similar to general partnership, except the partners are
not held responsible for business debt, and liabilities
What characteristics are associated with a corporation? - ACCURATE
ANSWERS✔✔ Legal entity, subject to the laws of states in which it is
formed, were the right to operate as a business is issued by state charter.
Corporations can own property, enter into contracts, Sue, and be sued
and engage in business operations under the terms of of each charter,
they are taxable entities and owners are not personally liable for its debt.
, List the five main steps for incorporation - ACCURATE ANSWERS✔✔
1. Select the companies
2. Writing articles of incorporation and filing them with the appropriate
state office, usually the secretary of state.
3. Pay required fees and taxes.
4. Hold an organizational meeting
5. Adopt bylaws, elect directors, and pass the first operating resolutions.
List the articles of incorporation components that are consistent among
all states - ACCURATE ANSWERS✔✔ 1. Name of corporation.
2. List of companies goals.
3. Types of stock and number of shares of each type to issue.
4. Life of the corporation.
5. Minimum investments by owners.
6. Methods for transferring shares of stock.
7. Address of the corporate office.
8. Name and addresses of the first board of directors.
What are the three components of a corporations organizational
structure? - ACCURATE ANSWERS✔✔ Stockholders - (or
shareholders) are the owners of a corporation, holding shares of stock
that provide them with certain rights. They may receive a portion of the
corporation's profits in the form of dividends, and they can sell or
transfer their ownership in the corporation (represented by their shares
of stock) at any time. Stockholders can attend annual meetings, elect the
