WGU D078
Business Applications and Structures
TASK 2
PASSED ON THE FIRST ATTEMPT
This TASK:
❖ Task 2 passed on the first attempt.
❖ This Task is significantly easier to Understand
❖ This version is improved for clarity, coherence,
and professional tone
, Task 2: Legal and Ethical Considerations
### A. Legal Entity Types
**1. Legal Entity Type 1: General Partnership**
A general partnership is when two or more individuals agree to share
profits and losses in a joint business venture.
- **Taxation:** Partners in the farmers market must report their annual
income, gains, losses, or profits to the IRS. The business itself does not
pay income taxes; instead, profits and losses pass through to the
partners. This could impose a greater tax burden on the farmer
compared to the retailer. Both partners file their gains and losses on
their personal tax returns.
- **Liability:** Both the retailer and the local farmer are responsible for
all decision-making and management duties and are personally liable
for all business debts.
- **Ownership and Control:** Ownership and control are shared
equally between the local farmer and the retailer.
Business Applications and Structures
TASK 2
PASSED ON THE FIRST ATTEMPT
This TASK:
❖ Task 2 passed on the first attempt.
❖ This Task is significantly easier to Understand
❖ This version is improved for clarity, coherence,
and professional tone
, Task 2: Legal and Ethical Considerations
### A. Legal Entity Types
**1. Legal Entity Type 1: General Partnership**
A general partnership is when two or more individuals agree to share
profits and losses in a joint business venture.
- **Taxation:** Partners in the farmers market must report their annual
income, gains, losses, or profits to the IRS. The business itself does not
pay income taxes; instead, profits and losses pass through to the
partners. This could impose a greater tax burden on the farmer
compared to the retailer. Both partners file their gains and losses on
their personal tax returns.
- **Liability:** Both the retailer and the local farmer are responsible for
all decision-making and management duties and are personally liable
for all business debts.
- **Ownership and Control:** Ownership and control are shared
equally between the local farmer and the retailer.
