WSU MBA 5300 Questions With All Correct
Answers
Businesses can be classified into the following forms: a proprietorship, a
partnership, a corporation, a limited liability company (LLC), and a limited
liability partnership (LLP).
Different forms of businesses have different characteristics. Which of the
following characteristics would apply to a corporation? Check all that apply.
correct answer -Chartered by a state and is its own entity separate from its
owners
Owners have limited liability
Has unlimited life
Easier to transfer ownership in the form of stock
Businesses can be classified into the following forms: a proprietorship, a
partnership, a corporation, a limited liability company (LLC), and a limited
liability partnership (LLP).
Different forms of businesses have different characteristics. Which of the
following characteristics would apply to a limited liability company and a
limited liability partnership? Check all that apply. correct answer -Have
corporate ownership structure
Owners have limited liability and right to vote
Limited financial liability
Taxed as a partnership
Ryan started a tutoring website. After a few months, a publishing company
filed a lawsuit against his company for copyright infringement. Ryan had to
shut down his business and lost all his personal assets in the process. What
type of business is this? correct answer -Proprietorship
, Richard founded and operated a wedding planning agency, which specialized
in celebrity weddings. When he died, his business was dissolved because there
was no plan for control after his death. correct answer -Proprietorship
Purple consulting has 5 consultants in the firm. The company's annual
revenue is around 500k. Income is distributed among all consultants and each
is personally liable for claims if the company goes under. What type of
business is this? correct answer -Partnership
Brandon and his friend Shirley run a carpet cleaning business. They distribute
the profits proportionately and file their individual taxes. correct answer -
Partnership
Caesar, the CEO of a beverage company, is required to certify the accuracy of
information provided in the company's quarterly reports. correct answer -
Corporation
Rock Inc. is a mineral mining company. The CEO of Rock Inc. recently died.
The news led to a short-term decline in the company's stock price, but it
bounced back after the company announced its quarterly earnings. correct
answer -Corporation
Paradigm Media is a company run by a group of new media professionals. The
owners of the company do not have any personal liability and file taxes based
on individual income. correct answer -Limited liability
partnership/corporation
Chris, Brandon, and Jose own an accounting firm in San Francisco. All share in
the profits of the firm proportionately and file taxes at an individual level.
According to their agreement, none of the owners will be held personally
liable for the accounting firm's debt. correct answer -Limited liability
partnership/corporation
A filing document, which includes rules made by the founders of a corporation
like the directors election process, terms of the positions, stockholder rules, &
procedures to amend the bylaws, etc. What is this document called? correct
answer -Corporate Bylaws
Answers
Businesses can be classified into the following forms: a proprietorship, a
partnership, a corporation, a limited liability company (LLC), and a limited
liability partnership (LLP).
Different forms of businesses have different characteristics. Which of the
following characteristics would apply to a corporation? Check all that apply.
correct answer -Chartered by a state and is its own entity separate from its
owners
Owners have limited liability
Has unlimited life
Easier to transfer ownership in the form of stock
Businesses can be classified into the following forms: a proprietorship, a
partnership, a corporation, a limited liability company (LLC), and a limited
liability partnership (LLP).
Different forms of businesses have different characteristics. Which of the
following characteristics would apply to a limited liability company and a
limited liability partnership? Check all that apply. correct answer -Have
corporate ownership structure
Owners have limited liability and right to vote
Limited financial liability
Taxed as a partnership
Ryan started a tutoring website. After a few months, a publishing company
filed a lawsuit against his company for copyright infringement. Ryan had to
shut down his business and lost all his personal assets in the process. What
type of business is this? correct answer -Proprietorship
, Richard founded and operated a wedding planning agency, which specialized
in celebrity weddings. When he died, his business was dissolved because there
was no plan for control after his death. correct answer -Proprietorship
Purple consulting has 5 consultants in the firm. The company's annual
revenue is around 500k. Income is distributed among all consultants and each
is personally liable for claims if the company goes under. What type of
business is this? correct answer -Partnership
Brandon and his friend Shirley run a carpet cleaning business. They distribute
the profits proportionately and file their individual taxes. correct answer -
Partnership
Caesar, the CEO of a beverage company, is required to certify the accuracy of
information provided in the company's quarterly reports. correct answer -
Corporation
Rock Inc. is a mineral mining company. The CEO of Rock Inc. recently died.
The news led to a short-term decline in the company's stock price, but it
bounced back after the company announced its quarterly earnings. correct
answer -Corporation
Paradigm Media is a company run by a group of new media professionals. The
owners of the company do not have any personal liability and file taxes based
on individual income. correct answer -Limited liability
partnership/corporation
Chris, Brandon, and Jose own an accounting firm in San Francisco. All share in
the profits of the firm proportionately and file taxes at an individual level.
According to their agreement, none of the owners will be held personally
liable for the accounting firm's debt. correct answer -Limited liability
partnership/corporation
A filing document, which includes rules made by the founders of a corporation
like the directors election process, terms of the positions, stockholder rules, &
procedures to amend the bylaws, etc. What is this document called? correct
answer -Corporate Bylaws
