LEGL 2700 Final Exam UGA (Hackleman)
2025/2026 Exam Questions and Answers
| 100% Solved
Closely Held Organizations - 🧠 ANSWER ✔✔small group of people (like
family owned)
Publicly Held Organization - 🧠 ANSWER ✔✔A corporation that may have
thousands of stockholders and whose stock is regularly traded on a
national securities exchange.
basic forms of business organizations - 🧠 ANSWER ✔✔1. Sole
Proprietorship
2. Partnership
,3. Corporation
hybrid forms of business organizations - 🧠 ANSWER ✔✔-limited
partnerships
-s corporations
-limited liability companies
-limited liability partnerships
factors to consider when picking a business' organization form - 🧠
ANSWER ✔✔1) cost of creation (time, paperwork, money)
2) continuity of the organization (stability/ durability of business and impact
of disillusion)
3) managerial control of decision (who manages the business)
4) owner liability (how personally liable is the owner of the business)
5) taxation (single/ double taxed)
Sole Proprietorship - 🧠 ANSWER ✔✔-business owned and operated by one
person
-least expensive business organization
-continuity is tied directly to will of owner
,-owner is in total control of the business' goals & operations
-no formal documentation necessary
-owner has unlimited liability for the obligations of the business organization
-not taxed as an organization (person is taxed)
-ownership (legal entity of sole proprietorship) can't be transferred
Example of sole proprietor - 🧠 ANSWER ✔✔writer, painter, vendor at
farmers market
partnerships - 🧠 ANSWER ✔✔-agreement between 2 or more persons to
share a common interest in a commercial endeavor
-cost to form is minimal
-strongly recommended to get a legal partnership agreement
-state assumed name statute is necessary if names aren't included in
company name
-may need to dissolve partnership before adding a new person unless you
have the buy out clause
-unlimited liability (jointly and unseverably liable)
-not a taxable organization
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, 3 types of partnerships - 🧠 ANSWER ✔✔1. General
2. Limited
3. Limited Liability
partnership examples - 🧠 ANSWER ✔✔-2 doctors, general partners in
same practice, case brought against 1 doctor for negligence, both liable
-father and son both grow potatoes, own their own equipment/ land, once
harvested they advertise together with both names, a loss arises, both
liable
corporations - 🧠 ANSWER ✔✔-artificial and intangible entity created under
the authority of a state's law
-more expensive to form than sole prop/ partnership
-have their own personal taxation rate
types of corporations - 🧠 ANSWER ✔✔-domestic (located in original state it
was formed in)
-foreign (located in a state outside of it's originated state)
-alien (relocated from a different country)
2025/2026 Exam Questions and Answers
| 100% Solved
Closely Held Organizations - 🧠 ANSWER ✔✔small group of people (like
family owned)
Publicly Held Organization - 🧠 ANSWER ✔✔A corporation that may have
thousands of stockholders and whose stock is regularly traded on a
national securities exchange.
basic forms of business organizations - 🧠 ANSWER ✔✔1. Sole
Proprietorship
2. Partnership
,3. Corporation
hybrid forms of business organizations - 🧠 ANSWER ✔✔-limited
partnerships
-s corporations
-limited liability companies
-limited liability partnerships
factors to consider when picking a business' organization form - 🧠
ANSWER ✔✔1) cost of creation (time, paperwork, money)
2) continuity of the organization (stability/ durability of business and impact
of disillusion)
3) managerial control of decision (who manages the business)
4) owner liability (how personally liable is the owner of the business)
5) taxation (single/ double taxed)
Sole Proprietorship - 🧠 ANSWER ✔✔-business owned and operated by one
person
-least expensive business organization
-continuity is tied directly to will of owner
,-owner is in total control of the business' goals & operations
-no formal documentation necessary
-owner has unlimited liability for the obligations of the business organization
-not taxed as an organization (person is taxed)
-ownership (legal entity of sole proprietorship) can't be transferred
Example of sole proprietor - 🧠 ANSWER ✔✔writer, painter, vendor at
farmers market
partnerships - 🧠 ANSWER ✔✔-agreement between 2 or more persons to
share a common interest in a commercial endeavor
-cost to form is minimal
-strongly recommended to get a legal partnership agreement
-state assumed name statute is necessary if names aren't included in
company name
-may need to dissolve partnership before adding a new person unless you
have the buy out clause
-unlimited liability (jointly and unseverably liable)
-not a taxable organization
COPYRIGHT©NINJANERD 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
3
, 3 types of partnerships - 🧠 ANSWER ✔✔1. General
2. Limited
3. Limited Liability
partnership examples - 🧠 ANSWER ✔✔-2 doctors, general partners in
same practice, case brought against 1 doctor for negligence, both liable
-father and son both grow potatoes, own their own equipment/ land, once
harvested they advertise together with both names, a loss arises, both
liable
corporations - 🧠 ANSWER ✔✔-artificial and intangible entity created under
the authority of a state's law
-more expensive to form than sole prop/ partnership
-have their own personal taxation rate
types of corporations - 🧠 ANSWER ✔✔-domestic (located in original state it
was formed in)
-foreign (located in a state outside of it's originated state)
-alien (relocated from a different country)
