BLAW 341 Exam 4 Questions and
Answers 100% Solved | Graded A+
5 major forms of business - ✔✔1.) Sole proprietorship
2.) General partnership
3.) Limited Partnerships
4.) LLC
5.) Corporations
7 concerns in forming a business - ✔✔1.) Ease of formation
2.) Taxation
3.) Personal Liability (Torts, Negligence, Contracts)
4.) Management and Control
5.) Ability to Raise Capital
6.) Transferability
7.) Continuity
Pass-Through Entity - ✔✔taxed once
Sole proprietorship - ✔✔_"The owner is the business"
-Simplest form of business to own and operate
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,General Partnership - ✔✔partnership in which partners share equally in
both responsibility and liability; no non profits, only for profit entities
Limited Partnership - ✔✔partnership in which only one partner is required
to be a general partner; other partner is limited partner (investor (silent),
can't manage company)
Limited Liability Partnership - ✔✔Reserved for professionals (law firm,
accounting firm, doctors); limits liability, if partner commits mal practice you
are not liable
Joint Venture - ✔✔General partnership for particular purpose for a limited
time (construction company, real estate agency; after goal is
achieved/done); both parties have liability
LLC (Limited Liability Company) - ✔✔Limited liability, pass through income
taxation, flexibility
Corporation - ✔✔A business owned by stockholders who share in its profits
but are not personally responsible for its debts
S Corp - ✔✔only taxed once, only 100 shareholders max
Business Trust - ✔✔Business organization governed by group of trustees,
who operate trust for beneficiaries
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,Syndicate - ✔✔Pull funding/capital together that you wouldn't afford
yourself
Cooperative - ✔✔A business that is owned by the members it serves and is
managed in their interest.
ex: ACE Hardware each individually owned
Two ways business relationships are terminated - ✔✔1.) Disassociation
2.) Dissolution
Disassociation - ✔✔is when one partner leaves and the business
continues, then partners iterate is absorbed into the business
(ex. death, withdraw, expelled)
Dissolution - ✔✔is when the business ends as a whole
(ex. illegal activity, unsuccessful, court or in an action brought by the
creditors)
Contract Remedies - ✔✔-When one party to a contract breaches the
contract by failing to perform his or her contractual duties, the law provides
a remedy for the injured party
-Equivalent of promised performance
Monetary Damages - ✔✔-Most frequently granted judicial remedy for
breach of contract
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, -Awarded for losses that are:
1. Foreseeable,
2. Established with reasonable certainty (evidence), and
3. Not avoidable
Foreseeability of Damages - ✔✔-Contracting parties are expected to
consider foreseeable risks at the time that they enter into the contract
-Only for loss that the party in breach had reason to foresee as a probable
result of a breach when the contract was made
-Test for foreseeable damages is objective and based on what the
breaching party had reason to foresee
-Loss may be deemed foreseeable as a probable result:
1. In the ordinary course of events or
2. As a result of special circumstances, beyond the ordinary course of
events, about which the party in breach had reason to know
Certainty of Damages - ✔✔-Damages are not recoverable for loss beyond
an amount that the injured party can establish with reasonable certainty
4
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
Answers 100% Solved | Graded A+
5 major forms of business - ✔✔1.) Sole proprietorship
2.) General partnership
3.) Limited Partnerships
4.) LLC
5.) Corporations
7 concerns in forming a business - ✔✔1.) Ease of formation
2.) Taxation
3.) Personal Liability (Torts, Negligence, Contracts)
4.) Management and Control
5.) Ability to Raise Capital
6.) Transferability
7.) Continuity
Pass-Through Entity - ✔✔taxed once
Sole proprietorship - ✔✔_"The owner is the business"
-Simplest form of business to own and operate
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,General Partnership - ✔✔partnership in which partners share equally in
both responsibility and liability; no non profits, only for profit entities
Limited Partnership - ✔✔partnership in which only one partner is required
to be a general partner; other partner is limited partner (investor (silent),
can't manage company)
Limited Liability Partnership - ✔✔Reserved for professionals (law firm,
accounting firm, doctors); limits liability, if partner commits mal practice you
are not liable
Joint Venture - ✔✔General partnership for particular purpose for a limited
time (construction company, real estate agency; after goal is
achieved/done); both parties have liability
LLC (Limited Liability Company) - ✔✔Limited liability, pass through income
taxation, flexibility
Corporation - ✔✔A business owned by stockholders who share in its profits
but are not personally responsible for its debts
S Corp - ✔✔only taxed once, only 100 shareholders max
Business Trust - ✔✔Business organization governed by group of trustees,
who operate trust for beneficiaries
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,Syndicate - ✔✔Pull funding/capital together that you wouldn't afford
yourself
Cooperative - ✔✔A business that is owned by the members it serves and is
managed in their interest.
ex: ACE Hardware each individually owned
Two ways business relationships are terminated - ✔✔1.) Disassociation
2.) Dissolution
Disassociation - ✔✔is when one partner leaves and the business
continues, then partners iterate is absorbed into the business
(ex. death, withdraw, expelled)
Dissolution - ✔✔is when the business ends as a whole
(ex. illegal activity, unsuccessful, court or in an action brought by the
creditors)
Contract Remedies - ✔✔-When one party to a contract breaches the
contract by failing to perform his or her contractual duties, the law provides
a remedy for the injured party
-Equivalent of promised performance
Monetary Damages - ✔✔-Most frequently granted judicial remedy for
breach of contract
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, -Awarded for losses that are:
1. Foreseeable,
2. Established with reasonable certainty (evidence), and
3. Not avoidable
Foreseeability of Damages - ✔✔-Contracting parties are expected to
consider foreseeable risks at the time that they enter into the contract
-Only for loss that the party in breach had reason to foresee as a probable
result of a breach when the contract was made
-Test for foreseeable damages is objective and based on what the
breaching party had reason to foresee
-Loss may be deemed foreseeable as a probable result:
1. In the ordinary course of events or
2. As a result of special circumstances, beyond the ordinary course of
events, about which the party in breach had reason to know
Certainty of Damages - ✔✔-Damages are not recoverable for loss beyond
an amount that the injured party can establish with reasonable certainty
4
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
