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