CSUF MGMT 246 EXAM 3 2026 WITH 100%
ACCURATE ANSWERS
sole proprietorship - Precise Answer ✔✔simplest form of
business entity where a business is owned and operated by one
person
true - Precise Answer ✔✔most american businesses are sole
proprietorships b/c they're adaptable to any type of business
true - Precise Answer ✔✔a sole proprietor can sell the business
without other's consent b/c they have total management &
control
true - Precise Answer ✔✔a sole proprietorship is not a separate
taxable entity and the proprietor must pay taxes personally
true - Precise Answer ✔✔a sole proprietorship has unlimited
personal liability which places personal assets at risk
unlimited personal liability - Precise Answer ✔✔complete
responsibility for all business debts
true - Precise Answer ✔✔a sole proprietorship's existence is
limited & lacks continuity b/c it automatically dissolves upon
death of the proprietor
partnership - Precise Answer ✔✔two or more persons carry on a
business for profit-co-owners-joint control
,true - Precise Answer ✔✔there is no partnership laws so they
are governed by agency law
intent in partnership - Precise Answer ✔✔key element in
determining if parties agreed to operate a business as partners
true - Precise Answer ✔✔a partnership is not a separate taxable
entity, information return only
general partnership - Precise Answer ✔✔easy-to-form
partnership with joint ownership and equal management/control
true - Precise Answer ✔✔you can sue a general partnership
jointly or severally (suing group or individuals)
old debt - Precise Answer ✔✔no personal liability, limited to
capital investment
new debt - Precise Answer ✔✔unlimited personal liability
true - Precise Answer ✔✔general partnerships have a majority
rule of 51% in decision making
winding up partnership - Precise Answer ✔✔a dissolution or
termination of a partnership by the acts of the partners, operation
of law, or judicial decree
asset allocation - Precise Answer ✔✔payments to creditors and
, partners for loans, capital contributions, & dividing the balance
among partners
limited partnership - Precise Answer ✔✔consists of at least one
general partner and one or more limited partners
general partner - Precise Answer ✔✔unlimited liability &
manages and runs day-to-day business/operations
limited partners - Precise Answer ✔✔liability limited to
investment & no management control over partnership
true - Precise Answer ✔✔limited partnership is not a taxable
entity
true - Precise Answer ✔✔a certificate of LP results in the gov
watching over the business, more complicated requirements than
a GP, and it includes information regarding partners, name,
mailing address, & capital contributions
true - Precise Answer ✔✔all partners have a right to access
partnership books and records
true - Precise Answer ✔✔both general and limited partners can
leave the limited partnership, which is usually governed in the
agreement
dissolution of LP - Precise Answer ✔✔pay creditors first &
make payments to partners relating to capital contributions and
profits
ACCURATE ANSWERS
sole proprietorship - Precise Answer ✔✔simplest form of
business entity where a business is owned and operated by one
person
true - Precise Answer ✔✔most american businesses are sole
proprietorships b/c they're adaptable to any type of business
true - Precise Answer ✔✔a sole proprietor can sell the business
without other's consent b/c they have total management &
control
true - Precise Answer ✔✔a sole proprietorship is not a separate
taxable entity and the proprietor must pay taxes personally
true - Precise Answer ✔✔a sole proprietorship has unlimited
personal liability which places personal assets at risk
unlimited personal liability - Precise Answer ✔✔complete
responsibility for all business debts
true - Precise Answer ✔✔a sole proprietorship's existence is
limited & lacks continuity b/c it automatically dissolves upon
death of the proprietor
partnership - Precise Answer ✔✔two or more persons carry on a
business for profit-co-owners-joint control
,true - Precise Answer ✔✔there is no partnership laws so they
are governed by agency law
intent in partnership - Precise Answer ✔✔key element in
determining if parties agreed to operate a business as partners
true - Precise Answer ✔✔a partnership is not a separate taxable
entity, information return only
general partnership - Precise Answer ✔✔easy-to-form
partnership with joint ownership and equal management/control
true - Precise Answer ✔✔you can sue a general partnership
jointly or severally (suing group or individuals)
old debt - Precise Answer ✔✔no personal liability, limited to
capital investment
new debt - Precise Answer ✔✔unlimited personal liability
true - Precise Answer ✔✔general partnerships have a majority
rule of 51% in decision making
winding up partnership - Precise Answer ✔✔a dissolution or
termination of a partnership by the acts of the partners, operation
of law, or judicial decree
asset allocation - Precise Answer ✔✔payments to creditors and
, partners for loans, capital contributions, & dividing the balance
among partners
limited partnership - Precise Answer ✔✔consists of at least one
general partner and one or more limited partners
general partner - Precise Answer ✔✔unlimited liability &
manages and runs day-to-day business/operations
limited partners - Precise Answer ✔✔liability limited to
investment & no management control over partnership
true - Precise Answer ✔✔limited partnership is not a taxable
entity
true - Precise Answer ✔✔a certificate of LP results in the gov
watching over the business, more complicated requirements than
a GP, and it includes information regarding partners, name,
mailing address, & capital contributions
true - Precise Answer ✔✔all partners have a right to access
partnership books and records
true - Precise Answer ✔✔both general and limited partners can
leave the limited partnership, which is usually governed in the
agreement
dissolution of LP - Precise Answer ✔✔pay creditors first &
make payments to partners relating to capital contributions and
profits
