BULE 303 - Test #4 questions with
verified answers graded A+ passed
Entrepreneur - correct answer ✔✔One who initiates and assumes the financial risks of a new
business enterprise and undertakes to provide or control its management.
Factors Considered:
1) ease of creation,
2) the liability of the owners,
3) tax considerations, and
4) the ability to raise capital.
Sole Proprietorship - correct answer ✔✔The simplest form of business, in which the owner is
the business. The owner reports business income on his or her personal income tax return and
is legally responsible for all debts and obligations incurred by the business.
Sole Proprietorship Advantages - correct answer ✔✔- Easiest to start & less costly
- Flexibility to make all decisions
- Single owner keeps all the profits
- Taxed once as personal income
- Least regulated
Sole Proprietorship Disadvantages - correct answer ✔✔- Owner bears all the burdens of debts
& losses
- Unlimited Liability
- Business automatically dissolves upon the owners death - no conveyance
, Partnership - correct answer ✔✔Arises from an agreement, express or implied, between two or
more persons to carry on a business for profit.
They are co-owners of a business and have joint control over its operation and the right to share
in its profits.
1) A sharing of profits and losses.
2) A joint ownership of the business.
3) An equal right to be involved in the management of the business.
General Partnership - correct answer ✔✔*This is the default if no other business form is
specified*
An agreement by two or more persons to carry on, as co-owners, a business for profit.
Articles of Partnership - correct answer ✔✔A written agreement that sets forth each partner's
rights and obligations with respect to the partnership.
Partnership for a Term - correct answer ✔✔A partnership that is specifically limited in duration
Issues of Dissociation: Partnership for a Term - correct answer ✔✔Dissociation without consent
of all partners before the end of the term is a breach of agreement
Issues of Dissociation: Partnership at Will - correct answer ✔✔If there is no fixed term, a
partnership is at will and any partner can dissociate from the company at anytime.
Partnership by Estoppel - correct answer ✔✔a person who represents himself or herself to be a
partner in an actual or alleged partnership is liable to any third person who acts in good faith
reliance
verified answers graded A+ passed
Entrepreneur - correct answer ✔✔One who initiates and assumes the financial risks of a new
business enterprise and undertakes to provide or control its management.
Factors Considered:
1) ease of creation,
2) the liability of the owners,
3) tax considerations, and
4) the ability to raise capital.
Sole Proprietorship - correct answer ✔✔The simplest form of business, in which the owner is
the business. The owner reports business income on his or her personal income tax return and
is legally responsible for all debts and obligations incurred by the business.
Sole Proprietorship Advantages - correct answer ✔✔- Easiest to start & less costly
- Flexibility to make all decisions
- Single owner keeps all the profits
- Taxed once as personal income
- Least regulated
Sole Proprietorship Disadvantages - correct answer ✔✔- Owner bears all the burdens of debts
& losses
- Unlimited Liability
- Business automatically dissolves upon the owners death - no conveyance
, Partnership - correct answer ✔✔Arises from an agreement, express or implied, between two or
more persons to carry on a business for profit.
They are co-owners of a business and have joint control over its operation and the right to share
in its profits.
1) A sharing of profits and losses.
2) A joint ownership of the business.
3) An equal right to be involved in the management of the business.
General Partnership - correct answer ✔✔*This is the default if no other business form is
specified*
An agreement by two or more persons to carry on, as co-owners, a business for profit.
Articles of Partnership - correct answer ✔✔A written agreement that sets forth each partner's
rights and obligations with respect to the partnership.
Partnership for a Term - correct answer ✔✔A partnership that is specifically limited in duration
Issues of Dissociation: Partnership for a Term - correct answer ✔✔Dissociation without consent
of all partners before the end of the term is a breach of agreement
Issues of Dissociation: Partnership at Will - correct answer ✔✔If there is no fixed term, a
partnership is at will and any partner can dissociate from the company at anytime.
Partnership by Estoppel - correct answer ✔✔a person who represents himself or herself to be a
partner in an actual or alleged partnership is liable to any third person who acts in good faith
reliance
