WGU 4C711
WGU C711 Chapter StudyChapter 4
Guide Questions & Answers Exam Review 2026–2027
Study this set o nline at: https://www.cram.co m/flashcards/wgu-c711-chapter-4-
9249195
What are the two mai n advantages f or sol e propri etorshi p si mpl i ci ty and i ndi vi dual control
a l egal concept that hol ds a busi ness owner personal l y responsi bl e f or al l the
D ef i ne Unl i mi tedl i abi l i ty
debts of the busi ness
T here i s l egal l y no di f f erence between the debtsof the busi ness and the debts of
What i s a maj or di sadvantage of sol e propri etorshi p
the propri etor
a vol untaryassoci ati on of two or more persons to act as co-owners of a busi ness f or
D ef i ne partnershi p
prof i t`
1
, WGU 4C711
WGU C711 Chapter StudyChapter 4
Guide Questions & Answers Exam Review 2026–2027
Study this set o nline at: https://www.cram.co m/flashcards/wgu-c711-chapter-4-
9249195
D ef i ne general partner a person who assumesf ul l or shared responsi bi l i ty f or operati ng a busi ness
General partners are acti ve i n day-to-daybusi ness operati ons, and each partner can
enter i nto contracts on behal f of theother partners.
What are some characteri sti cs of a general partnershi p
H e or she al so assumes unl i mi ted l i abi l i ty f or al l debts,i ncl udi ng debts i ncurred
by any other general partner wi thout hi s or herknowl edge or consent
a person who i nvestsmoney i n a busi ness but has no management responsi bi l i ty or
D ef i ne l i mi ted partner
l i abi l i ty f orl osses beyond the amount he or she i nvested i n the partnershi p
Avai l abi l i ty of Capi tal and Credi t
Personal I nterest
What are some advantages of partnershi ps Combi ned Busi nessSki l l s and Knowl edge
Retenti on of Prof i ts
No Speci al T axes
2
WGU C711 Chapter StudyChapter 4
Guide Questions & Answers Exam Review 2026–2027
Study this set o nline at: https://www.cram.co m/flashcards/wgu-c711-chapter-4-
9249195
What are the two mai n advantages f or sol e propri etorshi p si mpl i ci ty and i ndi vi dual control
a l egal concept that hol ds a busi ness owner personal l y responsi bl e f or al l the
D ef i ne Unl i mi tedl i abi l i ty
debts of the busi ness
T here i s l egal l y no di f f erence between the debtsof the busi ness and the debts of
What i s a maj or di sadvantage of sol e propri etorshi p
the propri etor
a vol untaryassoci ati on of two or more persons to act as co-owners of a busi ness f or
D ef i ne partnershi p
prof i t`
1
, WGU 4C711
WGU C711 Chapter StudyChapter 4
Guide Questions & Answers Exam Review 2026–2027
Study this set o nline at: https://www.cram.co m/flashcards/wgu-c711-chapter-4-
9249195
D ef i ne general partner a person who assumesf ul l or shared responsi bi l i ty f or operati ng a busi ness
General partners are acti ve i n day-to-daybusi ness operati ons, and each partner can
enter i nto contracts on behal f of theother partners.
What are some characteri sti cs of a general partnershi p
H e or she al so assumes unl i mi ted l i abi l i ty f or al l debts,i ncl udi ng debts i ncurred
by any other general partner wi thout hi s or herknowl edge or consent
a person who i nvestsmoney i n a busi ness but has no management responsi bi l i ty or
D ef i ne l i mi ted partner
l i abi l i ty f orl osses beyond the amount he or she i nvested i n the partnershi p
Avai l abi l i ty of Capi tal and Credi t
Personal I nterest
What are some advantages of partnershi ps Combi ned Busi nessSki l l s and Knowl edge
Retenti on of Prof i ts
No Speci al T axes
2
