MBAA 604: Strategic Managerial
Accounting
◉ Businesses can be classified into the following forms: a
proprietorship, a partnership, a corporation, a limited liability company
(LLC), and a limited liability partnership (LLP).
Different forms of businesses have different characteristics. Which of
the following characteristics would apply to a corporation? Check all
that apply. Answer: Chartered by a state and is its own entity separate
from its owners
Owners have limited liability
Has unlimited life
Easier to transfer ownership in the form of stock
◉ Businesses can be classified into the following forms: a
proprietorship, a partnership, a corporation, a limited liability company
(LLC), and a limited liability partnership (LLP).
Different forms of businesses have different characteristics. Which of
the following characteristics would apply to a limited liability company
,and a limited liability partnership? Check all that apply. Answer: Have
corporate ownership structure
Owners have limited liability and right to vote
Limited financial liability
Taxed as a partnership
◉ Ryan started a tutoring website. After a few months, a publishing
company filed a lawsuit against his company for copyright infringement.
Ryan had to shut down his business and lost all his personal assets in the
process. What type of business is this? Answer: Proprietorship
◉ Richard founded and operated a wedding planning agency, which
specialized in celebrity weddings. When he died, his business was
dissolved because there was no plan for control after his death. Answer:
Proprietorship
◉ Purple consulting has 5 consultants in the firm. The company's annual
revenue is around 500k. Income is distributed among all consultants and
each is personally liable for claims if the company goes under. What
type of business is this? Answer: Partnership
, ◉ Brandon and his friend Shirley run a carpet cleaning business. They
distribute the profits proportionately and file their individual taxes.
Answer: Partnership
◉ Caesar, the CEO of a beverage company, is required to certify the
accuracy of information provided in the company's quarterly reports.
Answer: Corporation
◉ Rock Inc. is a mineral mining company. The CEO of Rock Inc.
recently died. The news led to a short-term decline in the company's
stock price, but it bounced back after the company announced its
quarterly earnings. Answer: Corporation
◉ Paradigm Media is a company run by a group of new media
professionals. The owners of the company do not have any personal
liability and file taxes based on individual income. Answer: Limited
liability partnership/corporation
◉ Chris, Brandon, and Jose own an accounting firm in San Francisco.
All share in the profits of the firm proportionately and file taxes at an
individual level. According to their agreement, none of the owners will
be held personally liable for the accounting firm's debt. Answer: Limited
liability partnership/corporation
◉ A filing document, which includes rules made by the founders of a
corporation like the directors election process, terms of the positions,
stockholder rules, & procedures to amend the bylaws, etc. What is this
document called? Answer: Corporate Bylaws
Accounting
◉ Businesses can be classified into the following forms: a
proprietorship, a partnership, a corporation, a limited liability company
(LLC), and a limited liability partnership (LLP).
Different forms of businesses have different characteristics. Which of
the following characteristics would apply to a corporation? Check all
that apply. Answer: Chartered by a state and is its own entity separate
from its owners
Owners have limited liability
Has unlimited life
Easier to transfer ownership in the form of stock
◉ Businesses can be classified into the following forms: a
proprietorship, a partnership, a corporation, a limited liability company
(LLC), and a limited liability partnership (LLP).
Different forms of businesses have different characteristics. Which of
the following characteristics would apply to a limited liability company
,and a limited liability partnership? Check all that apply. Answer: Have
corporate ownership structure
Owners have limited liability and right to vote
Limited financial liability
Taxed as a partnership
◉ Ryan started a tutoring website. After a few months, a publishing
company filed a lawsuit against his company for copyright infringement.
Ryan had to shut down his business and lost all his personal assets in the
process. What type of business is this? Answer: Proprietorship
◉ Richard founded and operated a wedding planning agency, which
specialized in celebrity weddings. When he died, his business was
dissolved because there was no plan for control after his death. Answer:
Proprietorship
◉ Purple consulting has 5 consultants in the firm. The company's annual
revenue is around 500k. Income is distributed among all consultants and
each is personally liable for claims if the company goes under. What
type of business is this? Answer: Partnership
, ◉ Brandon and his friend Shirley run a carpet cleaning business. They
distribute the profits proportionately and file their individual taxes.
Answer: Partnership
◉ Caesar, the CEO of a beverage company, is required to certify the
accuracy of information provided in the company's quarterly reports.
Answer: Corporation
◉ Rock Inc. is a mineral mining company. The CEO of Rock Inc.
recently died. The news led to a short-term decline in the company's
stock price, but it bounced back after the company announced its
quarterly earnings. Answer: Corporation
◉ Paradigm Media is a company run by a group of new media
professionals. The owners of the company do not have any personal
liability and file taxes based on individual income. Answer: Limited
liability partnership/corporation
◉ Chris, Brandon, and Jose own an accounting firm in San Francisco.
All share in the profits of the firm proportionately and file taxes at an
individual level. According to their agreement, none of the owners will
be held personally liable for the accounting firm's debt. Answer: Limited
liability partnership/corporation
◉ A filing document, which includes rules made by the founders of a
corporation like the directors election process, terms of the positions,
stockholder rules, & procedures to amend the bylaws, etc. What is this
document called? Answer: Corporate Bylaws
