WGU D775 INTRO BUSINESS FINANCE PA
AND OA 200 QUESTIONS 2025 UPDATE
FINAL SCRIPT 2026 FULL SOLUTIONS AND
CORRECT ANSWERS GRADED A+
⩥ sole proprietorship. Answer: owned by one person; pay taxes based on
individual tax rate; ends when the sole proprietor dies
⩥ advantages of sole proprietorship. Answer: easy to start; all profits
belong to the owner; managerial freedom
⩥ disadvantages of sole proprietorship. Answer: unlimited liability; all
risks fall on the owner; limited ability to raise capital
⩥ unlimited liability. Answer: no distinction between personal assets or
business assets
⩥ partnership. Answer: made up of 2 or more people; relatively easy to
start; partnership doesn't pay taxes itself, it flows through to the owner;
shared profits; less managerial control; can file paperwork, but not
required; liability for each other's stuff
⩥ corporation. Answer: artificial entity that legally functions separate &
apart from its owners; starts when a company needs more money to
, grow; more value by far; can buy property, can be sued; can act like a
person
⩥ characteristics of corporation. Answer: limited liability; easier to raise
capital (equity & debt financing); continuous life (keeps going if owner
dies); easy to buy & sell stock; double taxation; government regulation
⩥ limited liability. Answer: the investor is not liable for more than the
amount he or she has invested in the firm
⩥ double taxation. Answer: corporation & individual (shareholder) is
taxed
⩥ progressive tax system. Answer: the more you make, the more you're
taxed; used in America
⩥ average tax rate. Answer: tax payment / tax income
⩥ marginal tax rate. Answer: the tax rate applicable to your next dollar
of income; if I make one more dollar, how much of that dollar would I
pay in taxes?
⩥ taxable income. Answer: sales - cost of goods sold - operation
expense - interest expense + interest income (investments) + dividend
income (30%-corp.)
AND OA 200 QUESTIONS 2025 UPDATE
FINAL SCRIPT 2026 FULL SOLUTIONS AND
CORRECT ANSWERS GRADED A+
⩥ sole proprietorship. Answer: owned by one person; pay taxes based on
individual tax rate; ends when the sole proprietor dies
⩥ advantages of sole proprietorship. Answer: easy to start; all profits
belong to the owner; managerial freedom
⩥ disadvantages of sole proprietorship. Answer: unlimited liability; all
risks fall on the owner; limited ability to raise capital
⩥ unlimited liability. Answer: no distinction between personal assets or
business assets
⩥ partnership. Answer: made up of 2 or more people; relatively easy to
start; partnership doesn't pay taxes itself, it flows through to the owner;
shared profits; less managerial control; can file paperwork, but not
required; liability for each other's stuff
⩥ corporation. Answer: artificial entity that legally functions separate &
apart from its owners; starts when a company needs more money to
, grow; more value by far; can buy property, can be sued; can act like a
person
⩥ characteristics of corporation. Answer: limited liability; easier to raise
capital (equity & debt financing); continuous life (keeps going if owner
dies); easy to buy & sell stock; double taxation; government regulation
⩥ limited liability. Answer: the investor is not liable for more than the
amount he or she has invested in the firm
⩥ double taxation. Answer: corporation & individual (shareholder) is
taxed
⩥ progressive tax system. Answer: the more you make, the more you're
taxed; used in America
⩥ average tax rate. Answer: tax payment / tax income
⩥ marginal tax rate. Answer: the tax rate applicable to your next dollar
of income; if I make one more dollar, how much of that dollar would I
pay in taxes?
⩥ taxable income. Answer: sales - cost of goods sold - operation
expense - interest expense + interest income (investments) + dividend
income (30%-corp.)
