BMGT 100 Exam 2 questions and
answers graded A+ updated
4 Common Kinds of Business Ownership - correct answer ✔✔Sole Proprietorship
Partnership
Corporations
Limited Liability Companies (LLC)
Considerations when choosing a form of business ownership - correct answer ✔✔* Business
control/transfer of power
* Taxation/division of profits
* Legal/financial liability
* East of startup/administration
Sole Proprietorship - correct answer ✔✔A form of business that is owned and operated by one
person.
Partnership - correct answer ✔✔A form of business owned by two or more people who
designate the duties and share of profits for each partner.
Corporation - correct answer ✔✔A form of business that is a separate legal entity with most of
the legal rights of a real person.
* Publicly traded
* Must be very transparent
Corporation's rights - correct answer ✔✔* Start/operate a business
, * Buy/sell property
* Borrow $
* Sue/be sued
* Enter binding contracts
Businesses cease to exist when... - correct answer ✔✔...a sole proprietor, partner, or LLC
member dies or retires.
These types of business ownership can make provisions in their ownership documents - correct
answer ✔✔Partnerships + LLCs
Tiers of a Corporation - correct answer ✔✔Owners/Shareholders
Board of Directors
Leadership Team (executives)
Management
Associates
Limited Liability Company - correct answer ✔✔A form of business that combines the benefits of
a corporation and a partnership while avoiding some of the restrictions of those forms of
ownership.
* Liable only to the extend of the company's assets
* You can choose between pass-thru and corp. rates
Pass-Thru Taxation - correct answer ✔✔When an owner's share of business profits is reported
on his or her individual tax return.
answers graded A+ updated
4 Common Kinds of Business Ownership - correct answer ✔✔Sole Proprietorship
Partnership
Corporations
Limited Liability Companies (LLC)
Considerations when choosing a form of business ownership - correct answer ✔✔* Business
control/transfer of power
* Taxation/division of profits
* Legal/financial liability
* East of startup/administration
Sole Proprietorship - correct answer ✔✔A form of business that is owned and operated by one
person.
Partnership - correct answer ✔✔A form of business owned by two or more people who
designate the duties and share of profits for each partner.
Corporation - correct answer ✔✔A form of business that is a separate legal entity with most of
the legal rights of a real person.
* Publicly traded
* Must be very transparent
Corporation's rights - correct answer ✔✔* Start/operate a business
, * Buy/sell property
* Borrow $
* Sue/be sued
* Enter binding contracts
Businesses cease to exist when... - correct answer ✔✔...a sole proprietor, partner, or LLC
member dies or retires.
These types of business ownership can make provisions in their ownership documents - correct
answer ✔✔Partnerships + LLCs
Tiers of a Corporation - correct answer ✔✔Owners/Shareholders
Board of Directors
Leadership Team (executives)
Management
Associates
Limited Liability Company - correct answer ✔✔A form of business that combines the benefits of
a corporation and a partnership while avoiding some of the restrictions of those forms of
ownership.
* Liable only to the extend of the company's assets
* You can choose between pass-thru and corp. rates
Pass-Thru Taxation - correct answer ✔✔When an owner's share of business profits is reported
on his or her individual tax return.
