WWU MGMT 271 Final exam with
answers
General requirements of starting a business - ....🔰VERIFIED ANSWERS....
✔✔1. Business Plan/Marketing Plan
2. Location, address, contact info
3. Determine best organization type
4. Research city requirements, licenses, inspections
5. Obtain EIN from IRS
6. Obtain master business license
7. Business banking
8. Insurance
9. Taxes
Business organization - ....🔰VERIFIED ANSWERS.... ✔✔Legally recognized
business form under which a business operates
Main factors for choosing type of business organization - ....🔰VERIFIED
ANSWERS.... ✔✔1. Legal status in relation to ownership
2. Creation
3. Control and compensation
4. Liability
5. Taxation
,6. Duration
Sole porpietorship - ....🔰VERIFIED ANSWERS.... ✔✔1. No legal distinction
between business and owner
2. Easy to create with new formalities
3. Can use own name or a trade name
4. Control and compensation
5. Liability
6. Taxation
7. Duration
Control and compensation - ....🔰VERIFIED ANSWERS.... ✔✔Owner has
complete control of the business, compensation comes from profits
Liability - ....🔰VERIFIED ANSWERS.... ✔✔is directly with the owner and
unlimited
Taxation - ....🔰VERIFIED ANSWERS.... ✔✔Owner is taxed on income
generated
Duration - ....🔰VERIFIED ANSWERS.... ✔✔is until the owner dies, retires or
transfers ownership. Debt remains with the owner unless creditors agree to a
release from liability
Partnerships - ....🔰VERIFIED ANSWERS.... ✔✔1. Composed of two or more
persons who contribute to the business
, 2. Partners share profits, losses, and management of the business. Each person
is equally liable for debts
3. Revised uniform partnership act
4. Partnership is a contractual relationship, and the three methods of creating a
contract apply
Revised Uniform Partnership Act - ....🔰VERIFIED ANSWERS....
✔✔Regulation of partnership businesses
Express partnership - ....🔰VERIFIED ANSWERS.... ✔✔Partners expressly
agree to form a partnership, this should be in writing but is not required
Impliedly - ....🔰VERIFIED ANSWERS.... ✔✔Two or more persons conduct
business together to meet the definition of partnership. sharing profits is
evidence
Estoppel/Apparent - ....🔰VERIFIED ANSWERS.... ✔✔When it appears that a
person is a partner, whoever created the apparent partner may be prevented
form denying the partnership relationship, if a third party reasonably an
detrimentally relied on the representation
Partnership control and compensation - ....🔰VERIFIED ANSWERS....
✔✔Control is mutual and equal in the scope of business, compensation is from
profits everything is equally shared
Partnership Liability - ....🔰VERIFIED ANSWERS.... ✔✔All partners are liable
for tort liabilities incurred in the scope of business and they are contractually
bound
answers
General requirements of starting a business - ....🔰VERIFIED ANSWERS....
✔✔1. Business Plan/Marketing Plan
2. Location, address, contact info
3. Determine best organization type
4. Research city requirements, licenses, inspections
5. Obtain EIN from IRS
6. Obtain master business license
7. Business banking
8. Insurance
9. Taxes
Business organization - ....🔰VERIFIED ANSWERS.... ✔✔Legally recognized
business form under which a business operates
Main factors for choosing type of business organization - ....🔰VERIFIED
ANSWERS.... ✔✔1. Legal status in relation to ownership
2. Creation
3. Control and compensation
4. Liability
5. Taxation
,6. Duration
Sole porpietorship - ....🔰VERIFIED ANSWERS.... ✔✔1. No legal distinction
between business and owner
2. Easy to create with new formalities
3. Can use own name or a trade name
4. Control and compensation
5. Liability
6. Taxation
7. Duration
Control and compensation - ....🔰VERIFIED ANSWERS.... ✔✔Owner has
complete control of the business, compensation comes from profits
Liability - ....🔰VERIFIED ANSWERS.... ✔✔is directly with the owner and
unlimited
Taxation - ....🔰VERIFIED ANSWERS.... ✔✔Owner is taxed on income
generated
Duration - ....🔰VERIFIED ANSWERS.... ✔✔is until the owner dies, retires or
transfers ownership. Debt remains with the owner unless creditors agree to a
release from liability
Partnerships - ....🔰VERIFIED ANSWERS.... ✔✔1. Composed of two or more
persons who contribute to the business
, 2. Partners share profits, losses, and management of the business. Each person
is equally liable for debts
3. Revised uniform partnership act
4. Partnership is a contractual relationship, and the three methods of creating a
contract apply
Revised Uniform Partnership Act - ....🔰VERIFIED ANSWERS....
✔✔Regulation of partnership businesses
Express partnership - ....🔰VERIFIED ANSWERS.... ✔✔Partners expressly
agree to form a partnership, this should be in writing but is not required
Impliedly - ....🔰VERIFIED ANSWERS.... ✔✔Two or more persons conduct
business together to meet the definition of partnership. sharing profits is
evidence
Estoppel/Apparent - ....🔰VERIFIED ANSWERS.... ✔✔When it appears that a
person is a partner, whoever created the apparent partner may be prevented
form denying the partnership relationship, if a third party reasonably an
detrimentally relied on the representation
Partnership control and compensation - ....🔰VERIFIED ANSWERS....
✔✔Control is mutual and equal in the scope of business, compensation is from
profits everything is equally shared
Partnership Liability - ....🔰VERIFIED ANSWERS.... ✔✔All partners are liable
for tort liabilities incurred in the scope of business and they are contractually
bound
