WSU MBA 5300 | BASED OFF OF MINDTAP HW AND
NOTES | 2025/2026 UPDATE | QUESTIONS AND
ANSWERS | WITH COMPLETE SOLUTION!!
Businesses can be classified into the following forms: a proprietorship, a
partnership, a corporation, a limited liability company (LLC), and a limited
liability partnership (LLP).
Different forms of businesses have different characteristics. Which of the
following characteristics would apply to a corporation? Check all that apply.
Answer - Chartered by a state and is its own entity separate from its owners
Owners have limited liability
Has unlimited life
Easier to transfer ownership in the form of stock
Businesses can be classified into the following forms: a proprietorship, a
partnership, a corporation, a limited liability company (LLC), and a limited
liability partnership (LLP).
Different forms of businesses have different characteristics. Which of the
following characteristics would apply to a limited liability company and a
limited liability partnership? Check all that apply. Answer - Have corporate
ownership structure
,Owners have limited liability and right to vote
Limited financial liability
Taxed as a partnership
Ryan started a tutoring website. After a few months, a publishing company filed
a lawsuit against his company for copyright infringement. Ryan had to shut
down his business and lost all his personal assets in the process. What type of
business is this? Answer - Proprietorship
Richard founded and operated a wedding planning agency, which specialized in
celebrity weddings. When he died, his business was dissolved because there
was no plan for control after his death. Answer - Proprietorship
Purple consulting has 5 consultants in the firm. The company's annual revenue
is around 500k. Income is distributed among all consultants and each is
personally liable for claims if the company goes under. What type of business is
this? Answer - Partnership
Brandon and his friend Shirley run a carpet cleaning business. They distribute
the profits proportionately and file their individual taxes. Answer - Partnership
Caesar, the CEO of a beverage company, is required to certify the accuracy of
information provided in the company's quarterly reports. Answer -
Corporation
Rock Inc. is a mineral mining company. The CEO of Rock Inc. recently died. The
news led to a short-term decline in the company's stock price, but it bounced
, back after the company announced its quarterly earnings. Answer -
Corporation
Paradigm Media is a company run by a group of new media professionals. The
owners of the company do not have any personal liability and file taxes based
on individual income. Answer - Limited liability partnership/corporation
Chris, Brandon, and Jose own an accounting firm in San Francisco. All share in
the profits of the firm proportionately and file taxes at an individual level.
According to their agreement, none of the owners will be held personally liable
for the accounting firm's debt. Answer - Limited liability
partnership/corporation
A filing document, which includes rules made by the founders of a corporation
like the directors election process, terms of the positions, stockholder rules, &
procedures to amend the bylaws, etc. What is this document called? Answer -
Corporate Bylaws
Businesses in the form of corporations offer their owners several advantages,
but the benefits come at a price. For instance, corporations are required to
create a charter, set bylaws, and file mandatory reports with state and federal
authorities, which can get expensive and time consuming.
The filing document, which requires the company to state: (1) the name of the
proposed corporation, (2) types of activities the company will be involved in,
(3) amount of capital stock, (4) number of directors, and (5) names and
addresses of the directors, is called the corporate ___. Answer - Charter
The owners of a corporation are ___. The primary objective of the corporate
management team is to ___ by ___ over the long run. Answer - the
shareholders of the company
NOTES | 2025/2026 UPDATE | QUESTIONS AND
ANSWERS | WITH COMPLETE SOLUTION!!
Businesses can be classified into the following forms: a proprietorship, a
partnership, a corporation, a limited liability company (LLC), and a limited
liability partnership (LLP).
Different forms of businesses have different characteristics. Which of the
following characteristics would apply to a corporation? Check all that apply.
Answer - Chartered by a state and is its own entity separate from its owners
Owners have limited liability
Has unlimited life
Easier to transfer ownership in the form of stock
Businesses can be classified into the following forms: a proprietorship, a
partnership, a corporation, a limited liability company (LLC), and a limited
liability partnership (LLP).
Different forms of businesses have different characteristics. Which of the
following characteristics would apply to a limited liability company and a
limited liability partnership? Check all that apply. Answer - Have corporate
ownership structure
,Owners have limited liability and right to vote
Limited financial liability
Taxed as a partnership
Ryan started a tutoring website. After a few months, a publishing company filed
a lawsuit against his company for copyright infringement. Ryan had to shut
down his business and lost all his personal assets in the process. What type of
business is this? Answer - Proprietorship
Richard founded and operated a wedding planning agency, which specialized in
celebrity weddings. When he died, his business was dissolved because there
was no plan for control after his death. Answer - Proprietorship
Purple consulting has 5 consultants in the firm. The company's annual revenue
is around 500k. Income is distributed among all consultants and each is
personally liable for claims if the company goes under. What type of business is
this? Answer - Partnership
Brandon and his friend Shirley run a carpet cleaning business. They distribute
the profits proportionately and file their individual taxes. Answer - Partnership
Caesar, the CEO of a beverage company, is required to certify the accuracy of
information provided in the company's quarterly reports. Answer -
Corporation
Rock Inc. is a mineral mining company. The CEO of Rock Inc. recently died. The
news led to a short-term decline in the company's stock price, but it bounced
, back after the company announced its quarterly earnings. Answer -
Corporation
Paradigm Media is a company run by a group of new media professionals. The
owners of the company do not have any personal liability and file taxes based
on individual income. Answer - Limited liability partnership/corporation
Chris, Brandon, and Jose own an accounting firm in San Francisco. All share in
the profits of the firm proportionately and file taxes at an individual level.
According to their agreement, none of the owners will be held personally liable
for the accounting firm's debt. Answer - Limited liability
partnership/corporation
A filing document, which includes rules made by the founders of a corporation
like the directors election process, terms of the positions, stockholder rules, &
procedures to amend the bylaws, etc. What is this document called? Answer -
Corporate Bylaws
Businesses in the form of corporations offer their owners several advantages,
but the benefits come at a price. For instance, corporations are required to
create a charter, set bylaws, and file mandatory reports with state and federal
authorities, which can get expensive and time consuming.
The filing document, which requires the company to state: (1) the name of the
proposed corporation, (2) types of activities the company will be involved in,
(3) amount of capital stock, (4) number of directors, and (5) names and
addresses of the directors, is called the corporate ___. Answer - Charter
The owners of a corporation are ___. The primary objective of the corporate
management team is to ___ by ___ over the long run. Answer - the
shareholders of the company
