BA 101 Final 2026 Exam
Questions and Verified Answers
| Already Graded A+
Sole proprietorship - 🧠ANSWER ✔✔A business owned and usually
managed by one person.
Advantages of sole proprietorship - 🧠ANSWER ✔✔Ease of starting and
ending the business; ability to be your own boss; pride of ownership;
leaving a legacy; retention of company profits; no special taxes.
,Disadvantages of sole proprietorship - 🧠ANSWER ✔✔Unlimited liability;
limited financial resources; management difficulties; overwhelming time
commitment; few fringe benefits; limited growth; limited life span.
General partnership - 🧠ANSWER ✔✔All owners share in operating the
business and in assuming liability for the business's debts.
Advantages of general partnership - 🧠ANSWER ✔✔More financial
resources; shared management and pooled/complementary skills; long
survival; no special taxes.
Disadvantages of general partnership - 🧠ANSWER ✔✔Unlimited liability;
division of profits; disagreements among partners; difficulty of termination.
Conventional (C) corporation - 🧠ANSWER ✔✔A state-chartered legal entity
with authority to act and have liability separate from its stockholders.
Advantages of C corporation - 🧠ANSWER ✔✔Separation of ownership from
management.
Disadvantages of C corporation - 🧠ANSWER ✔✔Initial cost; extensive
paperwork; double taxation; two tax returns; size; possible conflict with
stockholders and board of directors.
, S corporation - 🧠ANSWER ✔✔A unique government creation that looks like
a corporation but is taxed like a sole proprietorship or partnership.
Limited Liability Company (LLC) - 🧠ANSWER ✔✔Similar to S corp but
without special eligibility requirements; operating flexibility; avoids double
taxation.
Merger - 🧠ANSWER ✔✔The result of two firms joining to form one
company.
Acquisition - 🧠ANSWER ✔✔One company's purchase of the property and
obligations of another company.
Types of mergers - 🧠ANSWER ✔✔Horizontal: same industry; Vertical:
distribution channel (suppliers/distributors); Conglomerate: unrelated
businesses.
Franchise agreement - 🧠ANSWER ✔✔An arrangement where a franchisor
sells the rights to use the business name and sell a product/service to
franchisees in a given territory.
Disadvantage of franchise agreement - 🧠ANSWER ✔✔Coattail effects: the
actions of other franchisees can impact your growth and profitability.
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
Questions and Verified Answers
| Already Graded A+
Sole proprietorship - 🧠ANSWER ✔✔A business owned and usually
managed by one person.
Advantages of sole proprietorship - 🧠ANSWER ✔✔Ease of starting and
ending the business; ability to be your own boss; pride of ownership;
leaving a legacy; retention of company profits; no special taxes.
,Disadvantages of sole proprietorship - 🧠ANSWER ✔✔Unlimited liability;
limited financial resources; management difficulties; overwhelming time
commitment; few fringe benefits; limited growth; limited life span.
General partnership - 🧠ANSWER ✔✔All owners share in operating the
business and in assuming liability for the business's debts.
Advantages of general partnership - 🧠ANSWER ✔✔More financial
resources; shared management and pooled/complementary skills; long
survival; no special taxes.
Disadvantages of general partnership - 🧠ANSWER ✔✔Unlimited liability;
division of profits; disagreements among partners; difficulty of termination.
Conventional (C) corporation - 🧠ANSWER ✔✔A state-chartered legal entity
with authority to act and have liability separate from its stockholders.
Advantages of C corporation - 🧠ANSWER ✔✔Separation of ownership from
management.
Disadvantages of C corporation - 🧠ANSWER ✔✔Initial cost; extensive
paperwork; double taxation; two tax returns; size; possible conflict with
stockholders and board of directors.
, S corporation - 🧠ANSWER ✔✔A unique government creation that looks like
a corporation but is taxed like a sole proprietorship or partnership.
Limited Liability Company (LLC) - 🧠ANSWER ✔✔Similar to S corp but
without special eligibility requirements; operating flexibility; avoids double
taxation.
Merger - 🧠ANSWER ✔✔The result of two firms joining to form one
company.
Acquisition - 🧠ANSWER ✔✔One company's purchase of the property and
obligations of another company.
Types of mergers - 🧠ANSWER ✔✔Horizontal: same industry; Vertical:
distribution channel (suppliers/distributors); Conglomerate: unrelated
businesses.
Franchise agreement - 🧠ANSWER ✔✔An arrangement where a franchisor
sells the rights to use the business name and sell a product/service to
franchisees in a given territory.
Disadvantage of franchise agreement - 🧠ANSWER ✔✔Coattail effects: the
actions of other franchisees can impact your growth and profitability.
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2026. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
