BULW 3310 EXAM 3 UPDATED EXAM QUESTIONS AND
ANSWERS
the simplest form of business organization in which the owner is the business. - CORRECT
ANSWER✅✅sole proprietorship
which business structure is the easiest and least costly to create? - CORRECT ANSWER✅✅sole
proprietorship
what is a con of a sole proprietorship? - CORRECT ANSWER✅✅Unlimited liability for debts and torts
what is a pro of a sole proprietorship? - CORRECT ANSWER✅✅taxes on personal income, own boss,
easy to create
an agreement by two or more persons to carry on, as co-owners, a business for profit. - CORRECT
ANSWER✅✅partnership
applies if you don't have your own agreement - CORRECT ANSWER✅✅uniform partnership act
the owners pay taxes on their personal income - CORRECT ANSWER✅✅passed through entity
A pro of partnership is what? - CORRECT ANSWER✅✅passed through entity
What is a con of partnership? - CORRECT ANSWER✅✅each partner has unlimited liability
Partners are agents of each other so are liable for each others torts and contracts regardless of whether
they participated in or even knew about the conduct giving rise to the lawsuit - CORRECT
ANSWER✅✅unlimited liability
Sets forth rights and obligations of the parties - CORRECT ANSWER✅✅operating agreement(articles of
partnership)
, withdrawal of a partner - CORRECT ANSWER✅✅dissociation
take all of your partnership profits and losses and liquidate everything; partnership ends. - CORRECT
ANSWER✅✅dissolution
The death, bankruptcy or withdrawal of a partner (dissociation) can trigger what? - CORRECT
ANSWER✅✅dissolution
the process of collecting, liquidating and distributing the P/S assets - CORRECT ANSWER✅✅winding up
what agreements should be created in a partnership? - CORRECT ANSWER✅✅buy/sell
a third party can sue the partners individually or the partnership - CORRECT ANSWER✅✅joint and
several liability
A partnership can be formed from a single project - CORRECT ANSWER✅✅joint venture
Shields you from the malpractice of your partners - CORRECT ANSWER✅✅limited liability partnership
who can use limited liability partnership? - CORRECT ANSWER✅✅licensed professionals
partners contribute money but are not liable for P/S debts beyond their initial investment AS LONG AS
THEY DO NOT GET INVOLVED IN DAY TO DAY BUSINESS OR MANAGEMENT - CORRECT
ANSWER✅✅limited partnership
you have to file with the secretary of state in order to file a - CORRECT ANSWER✅✅limited liability
partnership and corporation
ANSWERS
the simplest form of business organization in which the owner is the business. - CORRECT
ANSWER✅✅sole proprietorship
which business structure is the easiest and least costly to create? - CORRECT ANSWER✅✅sole
proprietorship
what is a con of a sole proprietorship? - CORRECT ANSWER✅✅Unlimited liability for debts and torts
what is a pro of a sole proprietorship? - CORRECT ANSWER✅✅taxes on personal income, own boss,
easy to create
an agreement by two or more persons to carry on, as co-owners, a business for profit. - CORRECT
ANSWER✅✅partnership
applies if you don't have your own agreement - CORRECT ANSWER✅✅uniform partnership act
the owners pay taxes on their personal income - CORRECT ANSWER✅✅passed through entity
A pro of partnership is what? - CORRECT ANSWER✅✅passed through entity
What is a con of partnership? - CORRECT ANSWER✅✅each partner has unlimited liability
Partners are agents of each other so are liable for each others torts and contracts regardless of whether
they participated in or even knew about the conduct giving rise to the lawsuit - CORRECT
ANSWER✅✅unlimited liability
Sets forth rights and obligations of the parties - CORRECT ANSWER✅✅operating agreement(articles of
partnership)
, withdrawal of a partner - CORRECT ANSWER✅✅dissociation
take all of your partnership profits and losses and liquidate everything; partnership ends. - CORRECT
ANSWER✅✅dissolution
The death, bankruptcy or withdrawal of a partner (dissociation) can trigger what? - CORRECT
ANSWER✅✅dissolution
the process of collecting, liquidating and distributing the P/S assets - CORRECT ANSWER✅✅winding up
what agreements should be created in a partnership? - CORRECT ANSWER✅✅buy/sell
a third party can sue the partners individually or the partnership - CORRECT ANSWER✅✅joint and
several liability
A partnership can be formed from a single project - CORRECT ANSWER✅✅joint venture
Shields you from the malpractice of your partners - CORRECT ANSWER✅✅limited liability partnership
who can use limited liability partnership? - CORRECT ANSWER✅✅licensed professionals
partners contribute money but are not liable for P/S debts beyond their initial investment AS LONG AS
THEY DO NOT GET INVOLVED IN DAY TO DAY BUSINESS OR MANAGEMENT - CORRECT
ANSWER✅✅limited partnership
you have to file with the secretary of state in order to file a - CORRECT ANSWER✅✅limited liability
partnership and corporation
