MIE 201 Exam 2: Chapters 4, 5, 8 Makanui NCSU Questions and Answers 100% Pass

MIE 201 Exam 2: Chapters 4, 5, 8 Makanui NCSU Questions and Answers 100% Pass 3 types of business ownership - Correct Answer ️️ -- sole propreitorship - partnership - corporation sole proprietorships - Correct Answer ️️ -- businesses owned by one individual - the most common form of business organization in the United States - easiest and least expensive form of business to start - ex: tutoring/bookkeeping/landscaping etc... sole proprietorship advantages - Correct Answer ️️ -- simplicity - single layer of taxation - taxed at individual rates - privacy - flexibility and control - personal satisfaction - fewer limitations on personal income -complete ownership of the profits sole proprietorship disadvantages - Correct Answer ️️ -- unlimited liability - finite life span - resource limitations - limited managerial experience - demands on owner - no employee benefits for the owner -lack of qualified employees (can't match wage demands) Many sole proprietors will focus on ______ - Correct Answer ️️ -services (like child care, salons, etc) rather than on the manufacture of goods unlimited liability - Correct Answer ️️ -- means that the owner is personally and fully responsible for all losses and debts of the business - major drawback to a sole proprietorship or a partnership - from a legal standpoint the owner and business are one and the same definition of a partnership - Correct Answer ️️ -an association of two or more persons to carry on, as co-owners, a business for profit; profits will be divided as specified in the agreement types of partnerships - Correct Answer ️️ -- general partnerships - limited partnerships - MLP - LLP general partnerships - Correct Answer ️️ -- partners are considered equal by law and all are liable for the business's debts - partners share ownership and both have unlimited liability ex) lawyers, accountants, etc. limited partnerships - Correct Answer ️️ -- one or more persons act as general partners who run the business while the remaining partners are passive investors (not involved in managing the business) - called this because their liability (amount of money they can lose) is limited to the amount of the capital they invested at the beginning of their partnership - passive investors and have limited liability articles of partnership - Correct Answer ️️ -legal documents that set forth the basic agreement between partners -list the money or assets that each partner contributed -states each partner's individual management role/duty - defines the steps a partner must take to sell his or her partnership interest or what will happen if one of the patterns dies MLP (master limited partnership) - Correct Answer ️️ -- allowed to raise money by selling units of ownership to the general public in the same way th