Mgmt 254 Final Exam Updated Questions And Correct Answers

MGMT 254 FINAL EXAM UPDATED QUESTIONS AND
CORRECT ANSWERS
Question:
1. types of business organizations
Answer:
sole proprietorship partnerships, LLPs, and LLCs corporations joint ventures unincorporated
associations cooperatives franchises

Question:
2. sole propreitor-ships
Answer:
most common business form

Question:
3. advantages of sole proprietor-ship
Answer:
no organizational costs owner has complete control income taxed ONLY at personal level

Question:
4. Disadvantages of Sole Proprietor-ship
Answer:
unlimited personal liability for owner business ends upon death of owner

Question:
5. partnerships
Answer:
voluntary combination of two or more "general partners" operating a business as co-owners for a
profit

Question:
6. advantages of partnerships
Answer:
No or low organizational costs Combines talents and resources of multiple persons Income taxed at
partner's personal level only

Question:
7. disadvantages of partnerships
Answer:
Unlimited personal liability of partners (partners are jointly liable for contracts of the partnership and
jointly and severally liable for torts of the partnership) Dissolution upon death or withdrawal of a
partner Partner must give notice or withdrawal to other partners and third parties to avoid continuing
liability for partnership debts

Question:
8. fact determina-tion

, Answer:
Existence of partnership is a ______ _________________ and not dependent on the intent of the
parties

Question:
9. written partner-ship agreement
Answer:
not required, but a good idea look first to this when determining rights and obligations of the partners
if this doesn't cover an issue, you look to the UPA or RUPA

Question:
10. tenancy in part-nership
Answer:
partnership property is owned in ______ ____ _____________

Question:
11. rights of a part-nership
Answer:
participate in management inspect books share in profits repayment of loans with interest contribution
and indemnity distribution of capital upon dissolution

Question:
12. duties of partner-ship
Answer:
loyalty, good faith, obedience

Question:
13. assignment of partner's interest
Answer:
only results in assignee having right to share in profits and capital upon dissolu-tion, unless partners
unanimously consent to assignee as a new full partner

Question:
14. limited partner-ships (LPs)
Answer:
requires at least one general partner and at least one limited partner, a certificate of limited
partnership filed with appropriate authority and must use LP or limited partnership in name

Question:
15. general partners
Answer:
have the right to manage/control LP and are personally liable for debts of LP

Question:
16. limited partners