FIN /
320F
/ /
EXAM
/ //
2 /
QUESTIONS WITH CORRECT ANSWERS
/ // // //
3 //Basic //Forms //of //Businesses //- //verified //answer(s)-
✔✔Sole //proprietorship, //partnership //& //corporation
Sole //proprietorship //- //verified //answer(s)-✔✔Most //common //form
owned //by //one //person
taxed //like //an //individual
unlimited //personal //liability
Pros //of //a //sole //proprietorship //- //verified //answer(s)-
✔✔Easily //
& //inexpensively //formed. //Generally, //only //licenses //required //by //the //state //& //municipality //in
//which //the //business //operates //are //needed. //
Subject //to //few //government //regulations. //
Taxed //like //an //individual, //not //a //corporation. //Earnings //are //taxed //only //once.
Cons //of //a //sole //proprietorship //- //verified //answer(s)-
✔✔Unlimited //personal //liability //for //business //debts.
A/
/proprietorship's /
/life //is //limited //to //the //time //the //individual //who //created //it //owns //the //business. //
, Transferring //ownership //is //difficult.
It's //difficult //for //a //proprietorship //to //obtain //large //sums //of //capital
Partnership //- //verified //answer(s)-✔✔a //business //shared //by //two //or //more //owners
Pros //of //a //partnership //- //verified //answer(s)-✔✔Easy //to //create
Few //regulations
Taxed //like //an //individual
Cons //of //a //partnership //- //verified //answer(s)-
✔✔Unlimited //personal //liability //for //partners //(both //get //sued)
Difficult //to //obtain //capital
Hard //to //transfer //ownership
The //business //dies //with //the //partners
Limited //Partnership //(LP) //- //verified //answer(s)-
✔✔Attractive //for //business //who //have //trouble //getting //investors.
Limited" //partners //have //limited //liability, //but //no //control //over //the //firm's //operations
"General" //partners //have //control, //but //unlimited //liability
LPs //are //popular //for //risky //businesses: //oil //drilling, //mining, //real //estate
Corporation //- //verified //answer(s)-✔✔Generate //the //most //revenue
Separate //& //distinct //legal //entity //chartered //by //the //state
Characteristics //of //a //corporation //- //verified //answer(s)-✔✔Unique //characteristic
Has //own //tax //ID //number; //pays //own //taxes
Can //be //sued
320F
/ /
EXAM
/ //
2 /
QUESTIONS WITH CORRECT ANSWERS
/ // // //
3 //Basic //Forms //of //Businesses //- //verified //answer(s)-
✔✔Sole //proprietorship, //partnership //& //corporation
Sole //proprietorship //- //verified //answer(s)-✔✔Most //common //form
owned //by //one //person
taxed //like //an //individual
unlimited //personal //liability
Pros //of //a //sole //proprietorship //- //verified //answer(s)-
✔✔Easily //
& //inexpensively //formed. //Generally, //only //licenses //required //by //the //state //& //municipality //in
//which //the //business //operates //are //needed. //
Subject //to //few //government //regulations. //
Taxed //like //an //individual, //not //a //corporation. //Earnings //are //taxed //only //once.
Cons //of //a //sole //proprietorship //- //verified //answer(s)-
✔✔Unlimited //personal //liability //for //business //debts.
A/
/proprietorship's /
/life //is //limited //to //the //time //the //individual //who //created //it //owns //the //business. //
, Transferring //ownership //is //difficult.
It's //difficult //for //a //proprietorship //to //obtain //large //sums //of //capital
Partnership //- //verified //answer(s)-✔✔a //business //shared //by //two //or //more //owners
Pros //of //a //partnership //- //verified //answer(s)-✔✔Easy //to //create
Few //regulations
Taxed //like //an //individual
Cons //of //a //partnership //- //verified //answer(s)-
✔✔Unlimited //personal //liability //for //partners //(both //get //sued)
Difficult //to //obtain //capital
Hard //to //transfer //ownership
The //business //dies //with //the //partners
Limited //Partnership //(LP) //- //verified //answer(s)-
✔✔Attractive //for //business //who //have //trouble //getting //investors.
Limited" //partners //have //limited //liability, //but //no //control //over //the //firm's //operations
"General" //partners //have //control, //but //unlimited //liability
LPs //are //popular //for //risky //businesses: //oil //drilling, //mining, //real //estate
Corporation //- //verified //answer(s)-✔✔Generate //the //most //revenue
Separate //& //distinct //legal //entity //chartered //by //the //state
Characteristics //of //a //corporation //- //verified //answer(s)-✔✔Unique //characteristic
Has //own //tax //ID //number; //pays //own //taxes
Can //be //sued
