7/17/25, 8:04
AM
WSU BLAW 210- EXAM 2: GRIFFEATH EXAM
QUESTIONS AND ANSWERS WITH COMPLETE
SOLUTIONS VERIFIED LATEST UPDATE GRADED A+
+ 2025/2026
Terms in this set (133)
Sole
proprietorshi
ps General
The major forms of business
partnerships
ownership are-
Limited
partnerships
Corporations
Liability companies
The simplest form of business organization.
Sole proprietorships: Exists when a person wants to start
their own business. They require no
formalities and few filings.
You don't have to pay to
Sole proprietorships-
incorporate Much easier
Advantages:
on taxes
Debts and liabilities are on
Sole proprietorships-
you personally This includes
Disadvantages:
fines
When two or more people start a business for profit.
All partners are personally liable for the debts
of the partnership Many use a written
agreement to help clarify their
relationship.
1/
14
, 7/17/25, 8:04
AM
General partnerships: Unless there is a written agreement to the contrary,
each partner has an equal share and equal vote in
the partnership.
Partnership ends with death or
withdrawal from partners
Agreements must be unanimous
Partners have a fiduciary relationship to one another. (includes
full disclosure)
Partners have a duty of loyalty to one another, to good
*Fiduciary relationship:
faith, and to put the interests of the partnership above
their own interests.
Easy to start like sole
General Partnership- Same tax advantages as sole
Advantages: Flexibility in rules if you have an agreement
RUPA applies if you dont have
an agreement Wrapping up
General Partnership- can be complex
Disadvantages: - How to pay outgoing partners
- If a partner messes up, both are liable
Similar to general partnership but with better
protections from investors Need this to be in
writing
Requires a general partner and at
Limited Partnerships: least one limited partner General
partner has a fiduciary duty to the
limited partners Terminates just like
a general partner
The order to payment is creditors first, limited
partners second, general partners third.
Limited partner is not liable for debts or other liabilities
Limited Partnerships- beyond their initial investment
Advantages: A good lawyer might be able to get you in deeper than you
intended
2/
14
AM
WSU BLAW 210- EXAM 2: GRIFFEATH EXAM
QUESTIONS AND ANSWERS WITH COMPLETE
SOLUTIONS VERIFIED LATEST UPDATE GRADED A+
+ 2025/2026
Terms in this set (133)
Sole
proprietorshi
ps General
The major forms of business
partnerships
ownership are-
Limited
partnerships
Corporations
Liability companies
The simplest form of business organization.
Sole proprietorships: Exists when a person wants to start
their own business. They require no
formalities and few filings.
You don't have to pay to
Sole proprietorships-
incorporate Much easier
Advantages:
on taxes
Debts and liabilities are on
Sole proprietorships-
you personally This includes
Disadvantages:
fines
When two or more people start a business for profit.
All partners are personally liable for the debts
of the partnership Many use a written
agreement to help clarify their
relationship.
1/
14
, 7/17/25, 8:04
AM
General partnerships: Unless there is a written agreement to the contrary,
each partner has an equal share and equal vote in
the partnership.
Partnership ends with death or
withdrawal from partners
Agreements must be unanimous
Partners have a fiduciary relationship to one another. (includes
full disclosure)
Partners have a duty of loyalty to one another, to good
*Fiduciary relationship:
faith, and to put the interests of the partnership above
their own interests.
Easy to start like sole
General Partnership- Same tax advantages as sole
Advantages: Flexibility in rules if you have an agreement
RUPA applies if you dont have
an agreement Wrapping up
General Partnership- can be complex
Disadvantages: - How to pay outgoing partners
- If a partner messes up, both are liable
Similar to general partnership but with better
protections from investors Need this to be in
writing
Requires a general partner and at
Limited Partnerships: least one limited partner General
partner has a fiduciary duty to the
limited partners Terminates just like
a general partner
The order to payment is creditors first, limited
partners second, general partners third.
Limited partner is not liable for debts or other liabilities
Limited Partnerships- beyond their initial investment
Advantages: A good lawyer might be able to get you in deeper than you
intended
2/
14
