BUSA 1102 Unit 7-9 2025/2026 Exam with Key
Detailed Questions and Answers (ORIGINAL
EXAM) A+ Graded University of People
Limited liability is form of legal liability in which general partners are liable for all
business debts if the business cannot meet its liabilities.
Select one:
a.True
b.False
b.False
Which stock is the corporation's primary class of stock issued, with each share
representing a partial claim to ownership or a share of the company's business?
Select one:
a.Common stock
b.Market value of stock
c.Preferred stock
a.Common stock
,The date upon which a company's board of directors votes and decides to give a cash
dividend to all the company shareholders; the date on which the dividends become a
legal liability is called .
Select one:
a.Date of record
b.Date of declaration
c.Date of payment
b.Date of declaration
This is the maximum number of shares that a corporation can issue to investors;
approved by state in which company is incorporated and specified in the corporate
charter.
Select one:
a.Outstanding shares
b.Authorized shares
c.Issued shares
b.Authorized shares
A _______________ occurs when a distribution of stock to existing shareholders is
greater than 25% of the total outstanding shares just before the distribution
Select one:
a.property dividend
b.large stock dividend
, c.small stock dividend
b.large stock dividend
This portion of a company's earnings that has been designated for a particular purpose
due to legal or contractual obligations.
Select one:
a.Restricted retained earnings
b.Appropriated retained earnings
c.Deficit in retained earnings
a.Restricted retained earnings
Capital accounts are equity accounts for each partner that track all activities, such as
profit sharing, reductions due to distributions, and contributions by partners to the
partnership.
Select one:
a.False
b.True
b.True
Limited liability partnership (LLP) is a partnership in which at least one partner is a
general partner but the remaining partners can be limited partners, which means they
are liable only for their own investment in the firm if the partnership cannot pay its
creditors; thus, their personal assets are not at risk.
Detailed Questions and Answers (ORIGINAL
EXAM) A+ Graded University of People
Limited liability is form of legal liability in which general partners are liable for all
business debts if the business cannot meet its liabilities.
Select one:
a.True
b.False
b.False
Which stock is the corporation's primary class of stock issued, with each share
representing a partial claim to ownership or a share of the company's business?
Select one:
a.Common stock
b.Market value of stock
c.Preferred stock
a.Common stock
,The date upon which a company's board of directors votes and decides to give a cash
dividend to all the company shareholders; the date on which the dividends become a
legal liability is called .
Select one:
a.Date of record
b.Date of declaration
c.Date of payment
b.Date of declaration
This is the maximum number of shares that a corporation can issue to investors;
approved by state in which company is incorporated and specified in the corporate
charter.
Select one:
a.Outstanding shares
b.Authorized shares
c.Issued shares
b.Authorized shares
A _______________ occurs when a distribution of stock to existing shareholders is
greater than 25% of the total outstanding shares just before the distribution
Select one:
a.property dividend
b.large stock dividend
, c.small stock dividend
b.large stock dividend
This portion of a company's earnings that has been designated for a particular purpose
due to legal or contractual obligations.
Select one:
a.Restricted retained earnings
b.Appropriated retained earnings
c.Deficit in retained earnings
a.Restricted retained earnings
Capital accounts are equity accounts for each partner that track all activities, such as
profit sharing, reductions due to distributions, and contributions by partners to the
partnership.
Select one:
a.False
b.True
b.True
Limited liability partnership (LLP) is a partnership in which at least one partner is a
general partner but the remaining partners can be limited partners, which means they
are liable only for their own investment in the firm if the partnership cannot pay its
creditors; thus, their personal assets are not at risk.
