WGU D078 TASK 2| ACCURATE AND VERIFIED ANSWERS| 2026 UPDATE
D078 TEM1 - Business Environment Applications I: Business Structures and Legal Environment - Legal and Ethical
Considerations, Task 2
TEMPLATE FOR D078 TASK 2 SUBMISSION
Name: Chantelle Rhoton
Student ID (STUID): 008876379
Task 2: Legal and Ethical Considerations
A. Compare two of the proposed legal entity types for the farmer’s market venture by doing the
following:
1. Legal Entity Type 1.
(A1) Describe one of the legal entity types identified in the scenario (i.e., Corporation, Limited
Liability Company (LLC), or General Partnership) and then describe how it would affect each of the
following factors in the context of the farmer’s market:
A Limited Liability Company is a company whose owners have limited liability
like corporations but are treated like partners for tax purposes, so they are not
taxed twice. This is becoming more and more popular with businesses, which
is why I think this would be the best fit for the farmer’s market.
• taxation – Taxation refers to how the business is taxed. In an LLC the profit or
loss from the farmer’s market would flow through to each partner, which in
this case is the farmer and the retailer, on their personal taxes.
• liability – Each partner would only be liable for what they put into the
business. If the business fails, each partner would be responsible for their own
debt.
• ownership and control – In an LLC the farmer and the retailer would share
ownership over the business and run the day-to-day happenings in the
business.
2. Legal Entity Type 2.
(A2) Describe one legal entity type identified in the scenario (i.e., Corporation, Limited Liability
Company (LLC), or General Partnership) that is different from the one described in part A1 and then
describe how it would affect each of the following factors in the context of the farmer’s market:
A corporation is considered its own entity. The owners are called shareholders
and get dividends from the company.
1
D078 TEM1 - Business Environment Applications I: Business Structures and Legal Environment - Legal and Ethical
Considerations, Task 2
TEMPLATE FOR D078 TASK 2 SUBMISSION
Name: Chantelle Rhoton
Student ID (STUID): 008876379
Task 2: Legal and Ethical Considerations
A. Compare two of the proposed legal entity types for the farmer’s market venture by doing the
following:
1. Legal Entity Type 1.
(A1) Describe one of the legal entity types identified in the scenario (i.e., Corporation, Limited
Liability Company (LLC), or General Partnership) and then describe how it would affect each of the
following factors in the context of the farmer’s market:
A Limited Liability Company is a company whose owners have limited liability
like corporations but are treated like partners for tax purposes, so they are not
taxed twice. This is becoming more and more popular with businesses, which
is why I think this would be the best fit for the farmer’s market.
• taxation – Taxation refers to how the business is taxed. In an LLC the profit or
loss from the farmer’s market would flow through to each partner, which in
this case is the farmer and the retailer, on their personal taxes.
• liability – Each partner would only be liable for what they put into the
business. If the business fails, each partner would be responsible for their own
debt.
• ownership and control – In an LLC the farmer and the retailer would share
ownership over the business and run the day-to-day happenings in the
business.
2. Legal Entity Type 2.
(A2) Describe one legal entity type identified in the scenario (i.e., Corporation, Limited Liability
Company (LLC), or General Partnership) that is different from the one described in part A1 and then
describe how it would affect each of the following factors in the context of the farmer’s market:
A corporation is considered its own entity. The owners are called shareholders
and get dividends from the company.
1
