WGU D548 Task 1: Comprehensive
Emergency Response | 2025/2026 Update
Difference between Value Based and Regulatory ethical behavior value-based ethical
behavior is implementing a policy that provides accommodations for employees
volunteering at a local nonprofit. An example of regulatory ethical behavior is
implementing a policy that protects sensitive customer data.
Describe the disadvantages of sole proprietorships
1. Unlimited liability (business owner becomes responsible for all debt company incurs)
2. Difficulty raising capital. Business assets are unprotected against claims of personal
creditors, so business lenders view so proprietorships as high risk due to the owners
unlimited liability.
3. Limited managerial expertise.
4. Trouble finding qualified employees due to lack of benefits, growth and pay compared to
larger corps
5. Personal time commitment.
6. Losses are the owners responsibility.
7. Unstable business life.
List the advantages of sole proprietorships
1. Easy and inexpensive to form
2. Few legal requirements
3.Profits all go to the owner
4. Direct control of business - all business decisions are made by the sole proprietorship
owner without having to consult anyone
What are some important elements of the partnership agreement?
Includes name of partnership, duties of each partner, compensation structure, outlines duties
and responsibilities, provisions, for the addition of new partners, the sale of partnership
interest, and procedures for resolving conflicts, dissolving the business, and distributing the
assets
1
,List the advantages of partnerships
1. ease of formation, partnerships are easy to form.
2. Availability of capital
3. Flexibility.
4. Diversity of skills and expertise.
5. Relative freedom from government control.
6. No special taxes (partnerships pay no income taxes)
Describe the disadvantages of partnerships
1. Unlimited liability - all general partners have unlimited liability for the deaths of the
business.
2. Potential for conflict between partners.
3. Difficulty exiting or dissolving partnership.
4. Complexity of profit sharing.
What is a General Partnership
All partners share in the management and profits they co-the assets, and can each act on
behalf of the firm. Each partner has unlimited liability for all the business obligations.
What is a limited partnership?
Has two or more partners - one or more general partners who have unlimited liability and one
or more limited partners whose liability is limited to the amount they invested
What is a limited liability partnership or LLP?
Similar to general partnership, except the partners are not held responsible for business debt,
and liabilities
2
,What characteristics are associated with a corporation?
Legal entity, subject to the laws of states in which it is formed, were the right to operate as a
business is issued by state charter. Corporations can own property, enter into contracts, Sue,
and be sued and engage in business operations under the terms of of each charter, they are
taxable entities and owners are not personally liable for its debt.
List the five main steps for incorporation
1. Select the companies
2. Writing articles of incorporation and filing them with the appropriate state office, usually
the secretary of state. 3. Pay required fees and taxes.
4. Hold an organizational meeting
5. Adopt bylaws, elect directors, and pass the first operating resolutions.
List the articles of incorporation components that are consistent among all states
1. Name of corporation.
2. List of companies goals.
3. Types of stock and number of shares of each type to issue.
4. Life of the corporation.
5. Minimum investments by owners.
6. Methods for transferring shares of stock.
7. Address of the corporate office.
8. Name and addresses of the first board of directors.
What are the three components of a corporations organizational structure?
Stockholders - (or shareholders) are the owners of a corporation, holding shares of stock that
provide them with certain rights. They may receive a portion of the corporation’s profits in
the form of dividends, and they can sell or transfer their ownership in the corporation
(represented by their shares of stock) at any time. Stockholders can attend annual meetings,
elect the board of directors, and vote on matters that affect the corporation in accordance with
its charter and bylaws. Each share of stock generally carries one vote.
3
, directors - The stockholders elect a board of directors to govern and handle the overall
management of the corporation. The directors set major corporate goals and policies, hire
corporate officers, and oversee the firm’s operations and finances. Small firms may have as
few as 3 directors, whereas large corporations usually have 10 to 15.
The boards of large corporations typically include both corporate executives and outside
directors (not employed by the organization) chosen
officers - top management and include the president and chief executive officer (CEO), vice
presidents, treasurer, and secretary, who are responsible for achieving corporate goals and
policies. Officers may also be board members and stockholders.
Describe advantages associated with corporations as a business form Limited
liability - limited to the amount of stock owned
ease of transferring ownership - Stockholders of public corporations can sell their shares at
any time without affecting the status of the corporation.
unlimited life
tax deductions - Corporations are allowed certain tax deductions, such as operating expenses,
which reduces their taxable income.
ability to attract financing - Corporations can raise money by selling new shares of stock.
Dividing ownership into smaller units makes it affordable to more investors, who can
purchase one or several thousand shares. The large size and stability of corporations also
helps them get bank financing.
Describe the disadvantages of corporations
4
Emergency Response | 2025/2026 Update
Difference between Value Based and Regulatory ethical behavior value-based ethical
behavior is implementing a policy that provides accommodations for employees
volunteering at a local nonprofit. An example of regulatory ethical behavior is
implementing a policy that protects sensitive customer data.
Describe the disadvantages of sole proprietorships
1. Unlimited liability (business owner becomes responsible for all debt company incurs)
2. Difficulty raising capital. Business assets are unprotected against claims of personal
creditors, so business lenders view so proprietorships as high risk due to the owners
unlimited liability.
3. Limited managerial expertise.
4. Trouble finding qualified employees due to lack of benefits, growth and pay compared to
larger corps
5. Personal time commitment.
6. Losses are the owners responsibility.
7. Unstable business life.
List the advantages of sole proprietorships
1. Easy and inexpensive to form
2. Few legal requirements
3.Profits all go to the owner
4. Direct control of business - all business decisions are made by the sole proprietorship
owner without having to consult anyone
What are some important elements of the partnership agreement?
Includes name of partnership, duties of each partner, compensation structure, outlines duties
and responsibilities, provisions, for the addition of new partners, the sale of partnership
interest, and procedures for resolving conflicts, dissolving the business, and distributing the
assets
1
,List the advantages of partnerships
1. ease of formation, partnerships are easy to form.
2. Availability of capital
3. Flexibility.
4. Diversity of skills and expertise.
5. Relative freedom from government control.
6. No special taxes (partnerships pay no income taxes)
Describe the disadvantages of partnerships
1. Unlimited liability - all general partners have unlimited liability for the deaths of the
business.
2. Potential for conflict between partners.
3. Difficulty exiting or dissolving partnership.
4. Complexity of profit sharing.
What is a General Partnership
All partners share in the management and profits they co-the assets, and can each act on
behalf of the firm. Each partner has unlimited liability for all the business obligations.
What is a limited partnership?
Has two or more partners - one or more general partners who have unlimited liability and one
or more limited partners whose liability is limited to the amount they invested
What is a limited liability partnership or LLP?
Similar to general partnership, except the partners are not held responsible for business debt,
and liabilities
2
,What characteristics are associated with a corporation?
Legal entity, subject to the laws of states in which it is formed, were the right to operate as a
business is issued by state charter. Corporations can own property, enter into contracts, Sue,
and be sued and engage in business operations under the terms of of each charter, they are
taxable entities and owners are not personally liable for its debt.
List the five main steps for incorporation
1. Select the companies
2. Writing articles of incorporation and filing them with the appropriate state office, usually
the secretary of state. 3. Pay required fees and taxes.
4. Hold an organizational meeting
5. Adopt bylaws, elect directors, and pass the first operating resolutions.
List the articles of incorporation components that are consistent among all states
1. Name of corporation.
2. List of companies goals.
3. Types of stock and number of shares of each type to issue.
4. Life of the corporation.
5. Minimum investments by owners.
6. Methods for transferring shares of stock.
7. Address of the corporate office.
8. Name and addresses of the first board of directors.
What are the three components of a corporations organizational structure?
Stockholders - (or shareholders) are the owners of a corporation, holding shares of stock that
provide them with certain rights. They may receive a portion of the corporation’s profits in
the form of dividends, and they can sell or transfer their ownership in the corporation
(represented by their shares of stock) at any time. Stockholders can attend annual meetings,
elect the board of directors, and vote on matters that affect the corporation in accordance with
its charter and bylaws. Each share of stock generally carries one vote.
3
, directors - The stockholders elect a board of directors to govern and handle the overall
management of the corporation. The directors set major corporate goals and policies, hire
corporate officers, and oversee the firm’s operations and finances. Small firms may have as
few as 3 directors, whereas large corporations usually have 10 to 15.
The boards of large corporations typically include both corporate executives and outside
directors (not employed by the organization) chosen
officers - top management and include the president and chief executive officer (CEO), vice
presidents, treasurer, and secretary, who are responsible for achieving corporate goals and
policies. Officers may also be board members and stockholders.
Describe advantages associated with corporations as a business form Limited
liability - limited to the amount of stock owned
ease of transferring ownership - Stockholders of public corporations can sell their shares at
any time without affecting the status of the corporation.
unlimited life
tax deductions - Corporations are allowed certain tax deductions, such as operating expenses,
which reduces their taxable income.
ability to attract financing - Corporations can raise money by selling new shares of stock.
Dividing ownership into smaller units makes it affordable to more investors, who can
purchase one or several thousand shares. The large size and stability of corporations also
helps them get bank financing.
Describe the disadvantages of corporations
4
