BUL 3310 Adkins Fsu Final Test
Questions with All Correct Quality
Answers 2025-2026 Updated.
principals - Answer owners of a business entity. are entitled to the profits of a business
based on percentage of ownership
what factors should you follow when choosing a business entity - Answer formation, liability,
capitalization, taxation of income, management and operation
sole- proprietorship - Answer one-person entity in which the debts and liabilities of the
business are also personal debts and liabilities of the principal
corporation - Answer one or more principals that invest money in exchange for
ownership(stock)
the principals generally have no personal liability for debts and liabilities of the business
choice of business entity varies widely on the type - Answer business and nature of the
liabilities associated with its business activity
business activity is self-funded and have low potential for liability - Answer do not require
the protection and flexibility offered by more complex forms of entity
a retail business that enters into long term contracts - Answer subject to lability based on
negligence
sole-proprietorship requires - Answer - minimal fee
- straight forward filing requirements with appropriate state or country government authority
- no annual filings
top choice for start up business with relatively low annual revenues and expenses - Answer
sole-proprietorship
, - certificate with local or state office
the chief drawback to the sole proprietorship as a form of entity - Answer lack of protection
of the principals personal assets for unpaid depts and liabilities of the business
sole proprietorships are ______ in their options for raising money - Answer limited
can sole proprietorships sell ownerships in their business - Answer NO they cannot
how can sole proprietorships capitalize their operations - Answer - finance business through
debts
- private loans
- commercial loans
private loans - Answer Money loaned by a private source (e.g., an individual) whereby the
debtor agrees to pay back the loan over a certain period of time at a certain rate
commercial loans - Answer Money loaned by a commercial source (e.g., a bank) whereby the
debtor agrees to pay back the loan over a certain period of time at a certain rate.
line of credit - Answer Form of commercial loan that allows the borrower to draw against a
predetermined credit limit, as needed, instead of receiving the full loan amount at one time.
biggest advantage of a line of credit is - Answer the borrower only pays interest on the funds
actually drawn instead of the full loan amount
most business owners prefer - Answer lower interest rate commercial loans or lines of credit
to high-interest credit cards
unsecured credit - Answer credit account with high interest rates that does not require
collateral and is paid back in accordance with a nonnegotiable creditor agreement
sole proprietorships taxes go to - Answer principals own individual tax return and pays
business income based on their own individual tax rate
Questions with All Correct Quality
Answers 2025-2026 Updated.
principals - Answer owners of a business entity. are entitled to the profits of a business
based on percentage of ownership
what factors should you follow when choosing a business entity - Answer formation, liability,
capitalization, taxation of income, management and operation
sole- proprietorship - Answer one-person entity in which the debts and liabilities of the
business are also personal debts and liabilities of the principal
corporation - Answer one or more principals that invest money in exchange for
ownership(stock)
the principals generally have no personal liability for debts and liabilities of the business
choice of business entity varies widely on the type - Answer business and nature of the
liabilities associated with its business activity
business activity is self-funded and have low potential for liability - Answer do not require
the protection and flexibility offered by more complex forms of entity
a retail business that enters into long term contracts - Answer subject to lability based on
negligence
sole-proprietorship requires - Answer - minimal fee
- straight forward filing requirements with appropriate state or country government authority
- no annual filings
top choice for start up business with relatively low annual revenues and expenses - Answer
sole-proprietorship
, - certificate with local or state office
the chief drawback to the sole proprietorship as a form of entity - Answer lack of protection
of the principals personal assets for unpaid depts and liabilities of the business
sole proprietorships are ______ in their options for raising money - Answer limited
can sole proprietorships sell ownerships in their business - Answer NO they cannot
how can sole proprietorships capitalize their operations - Answer - finance business through
debts
- private loans
- commercial loans
private loans - Answer Money loaned by a private source (e.g., an individual) whereby the
debtor agrees to pay back the loan over a certain period of time at a certain rate
commercial loans - Answer Money loaned by a commercial source (e.g., a bank) whereby the
debtor agrees to pay back the loan over a certain period of time at a certain rate.
line of credit - Answer Form of commercial loan that allows the borrower to draw against a
predetermined credit limit, as needed, instead of receiving the full loan amount at one time.
biggest advantage of a line of credit is - Answer the borrower only pays interest on the funds
actually drawn instead of the full loan amount
most business owners prefer - Answer lower interest rate commercial loans or lines of credit
to high-interest credit cards
unsecured credit - Answer credit account with high interest rates that does not require
collateral and is paid back in accordance with a nonnegotiable creditor agreement
sole proprietorships taxes go to - Answer principals own individual tax return and pays
business income based on their own individual tax rate
