WSU MBA 5300 Exam Questions with Correct Answers
Businesses can be classified into the following forms: a proprietorship, a partnership, a corporation, a
limited liability company (LLC), and a limited liability partnership (LLP).
Different forms of businesses have different characteristics. Which of the following characteristics would
apply to a corporation? Check all that apply. - Answers Chartered by a state and is its own entity
separate from its owners
Owners have limited liability
Has unlimited life
Easier to transfer ownership in the form of stock
Businesses can be classified into the following forms: a proprietorship, a partnership, a corporation, a
limited liability company (LLC), and a limited liability partnership (LLP).
Different forms of businesses have different characteristics. Which of the following characteristics would
apply to a limited liability company and a limited liability partnership? Check all that apply. - Answers
Have corporate ownership structure
Owners have limited liability and right to vote
Limited financial liability
Taxed as a partnership
Ryan started a tutoring website. After a few months, a publishing company filed a lawsuit against his
company for copyright infringement. Ryan had to shut down his business and lost all his personal assets
in the process. What type of business is this? - Answers Proprietorship
, Richard founded and operated a wedding planning agency, which specialized in celebrity weddings.
When he died, his business was dissolved because there was no plan for control after his death. -
Answers Proprietorship
Purple consulting has 5 consultants in the firm. The company's annual revenue is around 500k. Income is
distributed among all consultants and each is personally liable for claims if the company goes under.
What type of business is this? - Answers Partnership
Brandon and his friend Shirley run a carpet cleaning business. They distribute the profits proportionately
and file their individual taxes. - Answers Partnership
Caesar, the CEO of a beverage company, is required to certify the accuracy of information provided in
the company's quarterly reports. - Answers Corporation
Rock Inc. is a mineral mining company. The CEO of Rock Inc. recently died. The news led to a short-term
decline in the company's stock price, but it bounced back after the company announced its quarterly
earnings. - Answers Corporation
Paradigm Media is a company run by a group of new media professionals. The owners of the company
do not have any personal liability and file taxes based on individual income. - Answers Limited liability
partnership/corporation
Chris, Brandon, and Jose own an accounting firm in San Francisco. All share in the profits of the firm
proportionately and file taxes at an individual level. According to their agreement, none of the owners
will be held personally liable for the accounting firm's debt. - Answers Limited liability
partnership/corporation
A filing document, which includes rules made by the founders of a corporation like the directors election
process, terms of the positions, stockholder rules, & procedures to amend the bylaws, etc. What is this
document called? - Answers Corporate Bylaws
Businesses in the form of corporations offer their owners several advantages, but the benefits come at a
price. For instance, corporations are required to create a charter, set bylaws, and file mandatory reports
with state and federal authorities, which can get expensive and time consuming.
The filing document, which requires the company to state: (1) the name of the proposed corporation, (2)
types of activities the company will be involved in, (3) amount of capital stock, (4) number of directors,
and (5) names and addresses of the directors, is called the corporate ___. - Answers Charter
The owners of a corporation are ___. The primary objective of the corporate management team is to
___ by ___ over the long run. - Answers the shareholders of the company
Businesses can be classified into the following forms: a proprietorship, a partnership, a corporation, a
limited liability company (LLC), and a limited liability partnership (LLP).
Different forms of businesses have different characteristics. Which of the following characteristics would
apply to a corporation? Check all that apply. - Answers Chartered by a state and is its own entity
separate from its owners
Owners have limited liability
Has unlimited life
Easier to transfer ownership in the form of stock
Businesses can be classified into the following forms: a proprietorship, a partnership, a corporation, a
limited liability company (LLC), and a limited liability partnership (LLP).
Different forms of businesses have different characteristics. Which of the following characteristics would
apply to a limited liability company and a limited liability partnership? Check all that apply. - Answers
Have corporate ownership structure
Owners have limited liability and right to vote
Limited financial liability
Taxed as a partnership
Ryan started a tutoring website. After a few months, a publishing company filed a lawsuit against his
company for copyright infringement. Ryan had to shut down his business and lost all his personal assets
in the process. What type of business is this? - Answers Proprietorship
, Richard founded and operated a wedding planning agency, which specialized in celebrity weddings.
When he died, his business was dissolved because there was no plan for control after his death. -
Answers Proprietorship
Purple consulting has 5 consultants in the firm. The company's annual revenue is around 500k. Income is
distributed among all consultants and each is personally liable for claims if the company goes under.
What type of business is this? - Answers Partnership
Brandon and his friend Shirley run a carpet cleaning business. They distribute the profits proportionately
and file their individual taxes. - Answers Partnership
Caesar, the CEO of a beverage company, is required to certify the accuracy of information provided in
the company's quarterly reports. - Answers Corporation
Rock Inc. is a mineral mining company. The CEO of Rock Inc. recently died. The news led to a short-term
decline in the company's stock price, but it bounced back after the company announced its quarterly
earnings. - Answers Corporation
Paradigm Media is a company run by a group of new media professionals. The owners of the company
do not have any personal liability and file taxes based on individual income. - Answers Limited liability
partnership/corporation
Chris, Brandon, and Jose own an accounting firm in San Francisco. All share in the profits of the firm
proportionately and file taxes at an individual level. According to their agreement, none of the owners
will be held personally liable for the accounting firm's debt. - Answers Limited liability
partnership/corporation
A filing document, which includes rules made by the founders of a corporation like the directors election
process, terms of the positions, stockholder rules, & procedures to amend the bylaws, etc. What is this
document called? - Answers Corporate Bylaws
Businesses in the form of corporations offer their owners several advantages, but the benefits come at a
price. For instance, corporations are required to create a charter, set bylaws, and file mandatory reports
with state and federal authorities, which can get expensive and time consuming.
The filing document, which requires the company to state: (1) the name of the proposed corporation, (2)
types of activities the company will be involved in, (3) amount of capital stock, (4) number of directors,
and (5) names and addresses of the directors, is called the corporate ___. - Answers Charter
The owners of a corporation are ___. The primary objective of the corporate management team is to
___ by ___ over the long run. - Answers the shareholders of the company
