1
BA 200 Final Questions with Correct Answers |
Updated (100% Correct Answers)
Sole Proprietorship Answer: Business with no formal requirements to start; you
can begin operating immediately.
Sole Proprietorship Liability Answer: Owner's personal assets are subject to
creditors if the business goes into debt.
Partnership Answer: Relationship where partners are mutual principals and
agents of each other.
Partnership Contracts Answer: Each partner can bind the other to contracts.
Partnership Taxes Answer: Partnership does not file a separate income tax return;
profits/losses flow to personal return, meaning each partner reports business
cash flow to their personal income tax, thus the business itself does not pay
taxes.
Limited Partnership Answer: Business with a general and limited partner; limited
partners have restricted involvement
Limited Partner Role Answer: Can invest and inspect books, but cannot manage
the company.
Limited Partner Liability Answer: Liability is limited to the amount of their
investment.
© 2026 All rights reserved
, 2
Mergers Approval Requirement Answer: Shareholder approval is required before
merging a corporation with another.
S-Corporation Answer: A form of corporation for small businesses that are
eligible, such as having no more than 100 shareholders.
How does S-Corporation taxation work Answer: "single taxation."
The business does not pay taxes on its income, but the shareholders pay tax on
their dividend profits
C-Corporation Answer: For larger businesses & subject to double taxation, the
corporation pays taxes, and shareholders pay taxes on dividends.
LLC Definition Answer: protects owners from personal liability while allowing
flexible management and pass-through taxation like a partnership.
LLC Origin Answer: Widely used internationally before adoption in the U.S.
Title VII Coverage Answer: Applies only to employers with 15 or more
employees.
Title VII Employment Areas Answer: Covers all aspects of the employer-
employee relationship.
Most Common Discrimination Claim Answer: Racial discrimination
What is not required to prove in a sexual harassment case? Answer: Physical
touch
© 2026 All rights reserved
BA 200 Final Questions with Correct Answers |
Updated (100% Correct Answers)
Sole Proprietorship Answer: Business with no formal requirements to start; you
can begin operating immediately.
Sole Proprietorship Liability Answer: Owner's personal assets are subject to
creditors if the business goes into debt.
Partnership Answer: Relationship where partners are mutual principals and
agents of each other.
Partnership Contracts Answer: Each partner can bind the other to contracts.
Partnership Taxes Answer: Partnership does not file a separate income tax return;
profits/losses flow to personal return, meaning each partner reports business
cash flow to their personal income tax, thus the business itself does not pay
taxes.
Limited Partnership Answer: Business with a general and limited partner; limited
partners have restricted involvement
Limited Partner Role Answer: Can invest and inspect books, but cannot manage
the company.
Limited Partner Liability Answer: Liability is limited to the amount of their
investment.
© 2026 All rights reserved
, 2
Mergers Approval Requirement Answer: Shareholder approval is required before
merging a corporation with another.
S-Corporation Answer: A form of corporation for small businesses that are
eligible, such as having no more than 100 shareholders.
How does S-Corporation taxation work Answer: "single taxation."
The business does not pay taxes on its income, but the shareholders pay tax on
their dividend profits
C-Corporation Answer: For larger businesses & subject to double taxation, the
corporation pays taxes, and shareholders pay taxes on dividends.
LLC Definition Answer: protects owners from personal liability while allowing
flexible management and pass-through taxation like a partnership.
LLC Origin Answer: Widely used internationally before adoption in the U.S.
Title VII Coverage Answer: Applies only to employers with 15 or more
employees.
Title VII Employment Areas Answer: Covers all aspects of the employer-
employee relationship.
Most Common Discrimination Claim Answer: Racial discrimination
What is not required to prove in a sexual harassment case? Answer: Physical
touch
© 2026 All rights reserved
