MNG 201 ACTUAL EXAM 3 LATEST 2025 WITH QUESTIONS AND CORRECT VERIFIED
ANSWERS GRADED A+ GUARANTEED 100% PASS
Chapter 11 - (answer)Business organization
The 8 Factors assist us in determining the best business organization for the situation (can evolve over
time) - (answer)1. Creation
2. Continuity/Stability
3. Control
4. Owner Liability
5. Taxation
6. Raise capital
7. Retain quality employees
8. Transfer interest
The more government approval, - (answer)the more costly it is
Creation - (answer)-What is involved to create each type of business listed below
- How much approval do you have to have from the government -> the more approval, the more
expensive
Continuity/Stability - (answer)- How is the life of the owner tied to the entity
- How easy is the entity dissolved
-How is the life of the entity connected to the life of the owners
Continuity / Stability p2 - (answer)- How easy is it for an owner to remove himself and how does it affect
the stability of the business
How to determine an owners share
, MNG 201 ACTUAL EXAM 3 LATEST 2025 WITH QUESTIONS AND CORRECT VERIFIED
ANSWERS GRADED A+ GUARANTEED 100% PASS
Control - (answer)o How much management/decision making/control does the owner have over the
business?
o How is the life of the entity connected to the life of the owners
o How easy is it for an owner to remove himself and how does it affect the stability of
o How to determine an owners share is.
Owner liability - (answer)o How much of the owner's personal assets and personal liability are exposed
to business?
o How much is the owner's personal property exposed to business operations
o sometimes they can only take the business's assets
Taxation - (answer)o Sometimes there is single taxation and sometimes there is double taxation
double taxation is highly controversial. , now more complicated under new tax law
Raise capital - (answer)o How easy is it to raise capital to expand and improve business?
o Expand, cash flow problems
Retain quality employees - (answer)o How difficult is it to keep my quality employees around?
Transfer interest - (answer)o How easy is it to transfer your interest? Some you can't and some there is
no market
o How easy is it to sell the business/interest?
Compare liability between corporation and sole proprietorship - (answer)..
Sole Proprietorship (most common) - (answer)- No difference between person and the business
- No distinction between the owner and the business, only one owner
, MNG 201 ACTUAL EXAM 3 LATEST 2025 WITH QUESTIONS AND CORRECT VERIFIED
ANSWERS GRADED A+ GUARANTEED 100% PASS
Creation of sole proprietorship - (answer)-Simple
- There is no government approval whatsoever
-You may have to get permission for a restaurant
- May need approval if you operate under a different name
Continuity of a sole proprietorship - (answer)-Life of the owner
- Life of the business entity and life of owner are tied together
- New sole proprietorship if the original sole proprietor dies; the restaurant can stay around but it is
considered a new business
- If the owner dies the restaurant is a new business (Absolutely connected) becomes an entirely
different SP
Control of a sole proprietorship - (answer)Great
- You have complete control because you are the only owner
-Delegate as much as you want
Liability of a sole proprietorship - (answer)personal (terrible)
- Business creditors can get to any of your assets
- Unlimited liability -> You are responsible for everything - Car, house, will, life savings
Taxation of a sole proprietorship - (answer)Single taxation
● occurs on the owner's individual income taxes
● have separate individual and business accounts for tax.
● The business does not pay tax at all, the individual pays the taxes on his individual income tax return
, MNG 201 ACTUAL EXAM 3 LATEST 2025 WITH QUESTIONS AND CORRECT VERIFIED
ANSWERS GRADED A+ GUARANTEED 100% PASS
Taxation of a sole proprietorship p2 - (answer)● Retained earnings (Fully taxable in a SP): you still have
to pay tax on the earnings going into next year
● ***Loss → if you have a business somewhere else you can take it from there
● Now there is an ability as a sole proprietary to get a 20% off your tax liability
Transfer of a sole proprietorship - (answer)● Can't transfer sole proprietorship.
● You are still able to sell the sole proprietorship
● Make a covenant not to compete clause - requires that the person selling the sole proprietorship can
not start a new business because then they will steal the customers
● Reasonable to: scope of activity, geographic location, period of time (max 2 years)
Retaining employees of a sole proprietorship - (answer)Difficult
-small business so no way for them to move up
Raising capital of a sole proprietorship - (answer)- Bank will want collateral -> the only thing you really
have is your personal assets
ex. Car, house, greater personal liability
If you buy a sole proprietorship - (answer)You have to have a non-compete clause in it
General partnership - (answer)(on test) ● 2 or more people (business entities) who own a common
business interest and have to agree to share the profits and losses
General Partnership p2 - (answer)● profits and losses do not have to be even, but normally are.
● Does not need to be 2 individual people - could be two LLC's joining together
Creation of a general partnership - (answer)Simple
ANSWERS GRADED A+ GUARANTEED 100% PASS
Chapter 11 - (answer)Business organization
The 8 Factors assist us in determining the best business organization for the situation (can evolve over
time) - (answer)1. Creation
2. Continuity/Stability
3. Control
4. Owner Liability
5. Taxation
6. Raise capital
7. Retain quality employees
8. Transfer interest
The more government approval, - (answer)the more costly it is
Creation - (answer)-What is involved to create each type of business listed below
- How much approval do you have to have from the government -> the more approval, the more
expensive
Continuity/Stability - (answer)- How is the life of the owner tied to the entity
- How easy is the entity dissolved
-How is the life of the entity connected to the life of the owners
Continuity / Stability p2 - (answer)- How easy is it for an owner to remove himself and how does it affect
the stability of the business
How to determine an owners share
, MNG 201 ACTUAL EXAM 3 LATEST 2025 WITH QUESTIONS AND CORRECT VERIFIED
ANSWERS GRADED A+ GUARANTEED 100% PASS
Control - (answer)o How much management/decision making/control does the owner have over the
business?
o How is the life of the entity connected to the life of the owners
o How easy is it for an owner to remove himself and how does it affect the stability of
o How to determine an owners share is.
Owner liability - (answer)o How much of the owner's personal assets and personal liability are exposed
to business?
o How much is the owner's personal property exposed to business operations
o sometimes they can only take the business's assets
Taxation - (answer)o Sometimes there is single taxation and sometimes there is double taxation
double taxation is highly controversial. , now more complicated under new tax law
Raise capital - (answer)o How easy is it to raise capital to expand and improve business?
o Expand, cash flow problems
Retain quality employees - (answer)o How difficult is it to keep my quality employees around?
Transfer interest - (answer)o How easy is it to transfer your interest? Some you can't and some there is
no market
o How easy is it to sell the business/interest?
Compare liability between corporation and sole proprietorship - (answer)..
Sole Proprietorship (most common) - (answer)- No difference between person and the business
- No distinction between the owner and the business, only one owner
, MNG 201 ACTUAL EXAM 3 LATEST 2025 WITH QUESTIONS AND CORRECT VERIFIED
ANSWERS GRADED A+ GUARANTEED 100% PASS
Creation of sole proprietorship - (answer)-Simple
- There is no government approval whatsoever
-You may have to get permission for a restaurant
- May need approval if you operate under a different name
Continuity of a sole proprietorship - (answer)-Life of the owner
- Life of the business entity and life of owner are tied together
- New sole proprietorship if the original sole proprietor dies; the restaurant can stay around but it is
considered a new business
- If the owner dies the restaurant is a new business (Absolutely connected) becomes an entirely
different SP
Control of a sole proprietorship - (answer)Great
- You have complete control because you are the only owner
-Delegate as much as you want
Liability of a sole proprietorship - (answer)personal (terrible)
- Business creditors can get to any of your assets
- Unlimited liability -> You are responsible for everything - Car, house, will, life savings
Taxation of a sole proprietorship - (answer)Single taxation
● occurs on the owner's individual income taxes
● have separate individual and business accounts for tax.
● The business does not pay tax at all, the individual pays the taxes on his individual income tax return
, MNG 201 ACTUAL EXAM 3 LATEST 2025 WITH QUESTIONS AND CORRECT VERIFIED
ANSWERS GRADED A+ GUARANTEED 100% PASS
Taxation of a sole proprietorship p2 - (answer)● Retained earnings (Fully taxable in a SP): you still have
to pay tax on the earnings going into next year
● ***Loss → if you have a business somewhere else you can take it from there
● Now there is an ability as a sole proprietary to get a 20% off your tax liability
Transfer of a sole proprietorship - (answer)● Can't transfer sole proprietorship.
● You are still able to sell the sole proprietorship
● Make a covenant not to compete clause - requires that the person selling the sole proprietorship can
not start a new business because then they will steal the customers
● Reasonable to: scope of activity, geographic location, period of time (max 2 years)
Retaining employees of a sole proprietorship - (answer)Difficult
-small business so no way for them to move up
Raising capital of a sole proprietorship - (answer)- Bank will want collateral -> the only thing you really
have is your personal assets
ex. Car, house, greater personal liability
If you buy a sole proprietorship - (answer)You have to have a non-compete clause in it
General partnership - (answer)(on test) ● 2 or more people (business entities) who own a common
business interest and have to agree to share the profits and losses
General Partnership p2 - (answer)● profits and losses do not have to be even, but normally are.
● Does not need to be 2 individual people - could be two LLC's joining together
Creation of a general partnership - (answer)Simple
