WSU MBA 5300 QUESTIONS WITH
COMPLETE ANSWERS
Businesses ggcan ggbe ggclassified gginto ggthe ggfollowing ggforms: gga ggproprietorship,
gga ggpartnership, gga ggcorporation, gga gglimited ggliability ggcompany gg(LLC), ggand
gga gglimited ggliability ggpartnership gg(LLP).
Different ggforms ggof ggbusinesses gghave ggdifferent ggcharacteristics. ggWhich ggof
ggthe ggfollowing ggcharacteristics ggwould ggapply ggto gga ggcorporation? ggCheck ggall
ggthat ggapply. gg- ggAnswer ggChartered ggby gga ggstate ggand ggis ggits ggown ggentity
ggseparate ggfrom ggits ggowners
Owners gghave gglimited ggliability
Has ggunlimited gglife
Easier ggto ggtransfer ggownership ggin ggthe ggform ggof ggstock
Businesses ggcan ggbe ggclassified gginto ggthe ggfollowing ggforms: gga ggproprietorship,
gga ggpartnership, gga ggcorporation, gga gglimited ggliability ggcompany gg(LLC), ggand
gga gglimited ggliability ggpartnership gg(LLP).
Different ggforms ggof ggbusinesses gghave ggdifferent ggcharacteristics. ggWhich ggof
ggthe ggfollowing ggcharacteristics ggwould ggapply ggto gga gglimited ggliability ggcompany
ggand gga gglimited ggliability ggpartnership? ggCheck ggall ggthat ggapply. gg- ggAnswer
ggHave ggcorporate ggownership ggstructure
Owners gghave gglimited ggliability ggand ggright ggto ggvote
Limited ggfinancial ggliability
Taxed ggas gga ggpartnership
Ryan ggstarted gga ggtutoring ggwebsite. ggAfter gga ggfew ggmonths, gga ggpublishing
ggcompany ggfiled gga gglawsuit ggagainst gghis ggcompany ggfor ggcopyright
gginfringement. ggRyan gghad ggto ggshut ggdown gghis ggbusiness ggand gglost ggall gghis
, ggpersonal ggassets ggin ggthe ggprocess. ggWhat ggtype ggof ggbusiness ggis ggthis? gg-
ggAnswer ggProprietorship
Richard ggfounded ggand ggoperated gga ggwedding ggplanning ggagency, ggwhich
ggspecialized ggin ggcelebrity ggweddings. ggWhen gghe ggdied, gghis ggbusiness ggwas
ggdissolved ggbecause ggthere ggwas ggno ggplan ggfor ggcontrol ggafter gghis ggdeath. gg-
ggAnswer ggProprietorship
Purple ggconsulting gghas gg5 ggconsultants ggin ggthe ggfirm. ggThe ggcompany's
ggannual ggrevenue ggis ggaround gg500k. ggIncome ggis ggdistributed ggamong ggall
ggconsultants ggand ggeach ggis ggpersonally ggliable ggfor ggclaims ggif ggthe ggcompany
gggoes ggunder. ggWhat ggtype ggof ggbusiness ggis ggthis? gg- ggAnswer ggPartnership
Brandon ggand gghis ggfriend ggShirley ggrun gga ggcarpet ggcleaning ggbusiness. ggThey
ggdistribute ggthe ggprofits ggproportionately ggand ggfile ggtheir ggindividual ggtaxes. gg-
ggAnswer ggPartnership
Caesar, ggthe ggCEO ggof gga ggbeverage ggcompany, ggis ggrequired ggto ggcertify ggthe
ggaccuracy ggof gginformation ggprovided ggin ggthe ggcompany's ggquarterly ggreports. gg-
ggAnswer ggCorporation
Rock ggInc. ggis gga ggmineral ggmining ggcompany. ggThe ggCEO ggof ggRock ggInc.
ggrecently ggdied. ggThe ggnews ggled ggto gga ggshort-term ggdecline ggin ggthe
ggcompany's ggstock ggprice, ggbut ggit ggbounced ggback ggafter ggthe ggcompany
ggannounced ggits ggquarterly ggearnings. gg- ggAnswer ggCorporation
Paradigm ggMedia ggis gga ggcompany ggrun ggby gga gggroup ggof ggnew ggmedia
ggprofessionals. ggThe ggowners ggof ggthe ggcompany ggdo ggnot gghave ggany
ggpersonal ggliability ggand ggfile ggtaxes ggbased ggon ggindividual ggincome. gg-
ggAnswer ggLimited ggliability ggpartnership/corporation
Chris, ggBrandon, ggand ggJose ggown ggan ggaccounting ggfirm ggin ggSan ggFrancisco.
ggAll ggshare ggin ggthe ggprofits ggof ggthe ggfirm ggproportionately ggand ggfile ggtaxes
ggat ggan ggindividual gglevel. ggAccording ggto ggtheir ggagreement, ggnone ggof ggthe
ggowners ggwill ggbe ggheld ggpersonally ggliable ggfor ggthe ggaccounting ggfirm's ggdebt.
gg- ggAnswer ggLimited ggliability ggpartnership/corporation
A ggfiling ggdocument, ggwhich ggincludes ggrules ggmade ggby ggthe ggfounders ggof gga
ggcorporation gglike ggthe ggdirectors ggelection ggprocess, ggterms ggof ggthe ggpositions,
ggstockholder ggrules, gg& ggprocedures ggto ggamend ggthe ggbylaws, ggetc. ggWhat ggis
ggthis ggdocument ggcalled? gg- ggAnswer ggCorporate ggBylaws
Businesses ggin ggthe ggform ggof ggcorporations ggoffer ggtheir ggowners ggseveral
ggadvantages, ggbut ggthe ggbenefits ggcome ggat gga ggprice. ggFor gginstance,
ggcorporations ggare ggrequired ggto ggcreate gga ggcharter, ggset ggbylaws, ggand ggfile
COMPLETE ANSWERS
Businesses ggcan ggbe ggclassified gginto ggthe ggfollowing ggforms: gga ggproprietorship,
gga ggpartnership, gga ggcorporation, gga gglimited ggliability ggcompany gg(LLC), ggand
gga gglimited ggliability ggpartnership gg(LLP).
Different ggforms ggof ggbusinesses gghave ggdifferent ggcharacteristics. ggWhich ggof
ggthe ggfollowing ggcharacteristics ggwould ggapply ggto gga ggcorporation? ggCheck ggall
ggthat ggapply. gg- ggAnswer ggChartered ggby gga ggstate ggand ggis ggits ggown ggentity
ggseparate ggfrom ggits ggowners
Owners gghave gglimited ggliability
Has ggunlimited gglife
Easier ggto ggtransfer ggownership ggin ggthe ggform ggof ggstock
Businesses ggcan ggbe ggclassified gginto ggthe ggfollowing ggforms: gga ggproprietorship,
gga ggpartnership, gga ggcorporation, gga gglimited ggliability ggcompany gg(LLC), ggand
gga gglimited ggliability ggpartnership gg(LLP).
Different ggforms ggof ggbusinesses gghave ggdifferent ggcharacteristics. ggWhich ggof
ggthe ggfollowing ggcharacteristics ggwould ggapply ggto gga gglimited ggliability ggcompany
ggand gga gglimited ggliability ggpartnership? ggCheck ggall ggthat ggapply. gg- ggAnswer
ggHave ggcorporate ggownership ggstructure
Owners gghave gglimited ggliability ggand ggright ggto ggvote
Limited ggfinancial ggliability
Taxed ggas gga ggpartnership
Ryan ggstarted gga ggtutoring ggwebsite. ggAfter gga ggfew ggmonths, gga ggpublishing
ggcompany ggfiled gga gglawsuit ggagainst gghis ggcompany ggfor ggcopyright
gginfringement. ggRyan gghad ggto ggshut ggdown gghis ggbusiness ggand gglost ggall gghis
, ggpersonal ggassets ggin ggthe ggprocess. ggWhat ggtype ggof ggbusiness ggis ggthis? gg-
ggAnswer ggProprietorship
Richard ggfounded ggand ggoperated gga ggwedding ggplanning ggagency, ggwhich
ggspecialized ggin ggcelebrity ggweddings. ggWhen gghe ggdied, gghis ggbusiness ggwas
ggdissolved ggbecause ggthere ggwas ggno ggplan ggfor ggcontrol ggafter gghis ggdeath. gg-
ggAnswer ggProprietorship
Purple ggconsulting gghas gg5 ggconsultants ggin ggthe ggfirm. ggThe ggcompany's
ggannual ggrevenue ggis ggaround gg500k. ggIncome ggis ggdistributed ggamong ggall
ggconsultants ggand ggeach ggis ggpersonally ggliable ggfor ggclaims ggif ggthe ggcompany
gggoes ggunder. ggWhat ggtype ggof ggbusiness ggis ggthis? gg- ggAnswer ggPartnership
Brandon ggand gghis ggfriend ggShirley ggrun gga ggcarpet ggcleaning ggbusiness. ggThey
ggdistribute ggthe ggprofits ggproportionately ggand ggfile ggtheir ggindividual ggtaxes. gg-
ggAnswer ggPartnership
Caesar, ggthe ggCEO ggof gga ggbeverage ggcompany, ggis ggrequired ggto ggcertify ggthe
ggaccuracy ggof gginformation ggprovided ggin ggthe ggcompany's ggquarterly ggreports. gg-
ggAnswer ggCorporation
Rock ggInc. ggis gga ggmineral ggmining ggcompany. ggThe ggCEO ggof ggRock ggInc.
ggrecently ggdied. ggThe ggnews ggled ggto gga ggshort-term ggdecline ggin ggthe
ggcompany's ggstock ggprice, ggbut ggit ggbounced ggback ggafter ggthe ggcompany
ggannounced ggits ggquarterly ggearnings. gg- ggAnswer ggCorporation
Paradigm ggMedia ggis gga ggcompany ggrun ggby gga gggroup ggof ggnew ggmedia
ggprofessionals. ggThe ggowners ggof ggthe ggcompany ggdo ggnot gghave ggany
ggpersonal ggliability ggand ggfile ggtaxes ggbased ggon ggindividual ggincome. gg-
ggAnswer ggLimited ggliability ggpartnership/corporation
Chris, ggBrandon, ggand ggJose ggown ggan ggaccounting ggfirm ggin ggSan ggFrancisco.
ggAll ggshare ggin ggthe ggprofits ggof ggthe ggfirm ggproportionately ggand ggfile ggtaxes
ggat ggan ggindividual gglevel. ggAccording ggto ggtheir ggagreement, ggnone ggof ggthe
ggowners ggwill ggbe ggheld ggpersonally ggliable ggfor ggthe ggaccounting ggfirm's ggdebt.
gg- ggAnswer ggLimited ggliability ggpartnership/corporation
A ggfiling ggdocument, ggwhich ggincludes ggrules ggmade ggby ggthe ggfounders ggof gga
ggcorporation gglike ggthe ggdirectors ggelection ggprocess, ggterms ggof ggthe ggpositions,
ggstockholder ggrules, gg& ggprocedures ggto ggamend ggthe ggbylaws, ggetc. ggWhat ggis
ggthis ggdocument ggcalled? gg- ggAnswer ggCorporate ggBylaws
Businesses ggin ggthe ggform ggof ggcorporations ggoffer ggtheir ggowners ggseveral
ggadvantages, ggbut ggthe ggbenefits ggcome ggat gga ggprice. ggFor gginstance,
ggcorporations ggare ggrequired ggto ggcreate gga ggcharter, ggset ggbylaws, ggand ggfile
