BA 200 Final Exam Questions with Correct Answers Latest Update 2025/2026
Sole Proprietorship - Answers Business with no formal requirements to start; you can begin
operating immediately.
Sole Proprietorship Liability - Answers Owner's personal assets are subject to creditors if the
business goes into debt.
Partnership - Answers Relationship where partners are mutual principals and agents of each
other.
Partnership Contracts - Answers Each partner can bind the other to contracts.
Partnership Taxes - Answers 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 - Answers Business with a general and limited partner; limited partners have
restricted involvement
Limited Partner Role - Answers Can invest and inspect books, but cannot manage the company.
Limited Partner Liability - Answers Liability is limited to the amount of their investment.
Mergers Approval Requirement - Answers Shareholder approval is required before merging a
corporation with another.
S-Corporation - Answers A form of corporation for small businesses that are eligible, such as
having no more than 100 shareholders.
How does S-Corporation taxation work - Answers "single taxation."
The business does not pay taxes on its income, but the shareholders pay tax on their dividend
profits
C-Corporation - Answers For larger businesses & subject to double taxation, the corporation
pays taxes, and shareholders pay taxes on dividends.
LLC Definition - Answers protects owners from personal liability while allowing flexible
management and pass-through taxation like a partnership.
LLC Origin - Answers Widely used internationally before adoption in the U.S.
Title VII Coverage - Answers Applies only to employers with 15 or more employees.
Title VII Employment Areas - Answers Covers all aspects of the employer-employee relationship.
Most Common Discrimination Claim - Answers Racial discrimination
Sole Proprietorship - Answers Business with no formal requirements to start; you can begin
operating immediately.
Sole Proprietorship Liability - Answers Owner's personal assets are subject to creditors if the
business goes into debt.
Partnership - Answers Relationship where partners are mutual principals and agents of each
other.
Partnership Contracts - Answers Each partner can bind the other to contracts.
Partnership Taxes - Answers 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 - Answers Business with a general and limited partner; limited partners have
restricted involvement
Limited Partner Role - Answers Can invest and inspect books, but cannot manage the company.
Limited Partner Liability - Answers Liability is limited to the amount of their investment.
Mergers Approval Requirement - Answers Shareholder approval is required before merging a
corporation with another.
S-Corporation - Answers A form of corporation for small businesses that are eligible, such as
having no more than 100 shareholders.
How does S-Corporation taxation work - Answers "single taxation."
The business does not pay taxes on its income, but the shareholders pay tax on their dividend
profits
C-Corporation - Answers For larger businesses & subject to double taxation, the corporation
pays taxes, and shareholders pay taxes on dividends.
LLC Definition - Answers protects owners from personal liability while allowing flexible
management and pass-through taxation like a partnership.
LLC Origin - Answers Widely used internationally before adoption in the U.S.
Title VII Coverage - Answers Applies only to employers with 15 or more employees.
Title VII Employment Areas - Answers Covers all aspects of the employer-employee relationship.
Most Common Discrimination Claim - Answers Racial discrimination
