Exam (elaborations)
MBA 5100- Exam 1(Summer 2024/25- A01) Questions and Answers
- Course
- Institution
MBA 5100- Exam 1(Summer 2024/25- A01) Questions and Answers
[Show more]
Content preview
MBA 5100- Exam 1(Summer 2024/25- A01) Questionsand Answers
Sole Proprietorship Correct Ans-a business owned and managed by a single individual
Partnership Correct Ans-a business owned by two or more people
True Correct Ans-True or false: In all 50 states, Partnerships are automatically dissolved
upon death of a partner
Corporations Correct Ans-Ownership divided into units, called "shares of capital" or
"common stock"
True (elect board of directors, who hire management team) Correct Ans-True or False:
Shareholders of publicly traded companies do not manage day-to-day operations
Limited Liability Company Correct Ans-Business that combines the attributes of a
partnership and a corporation
Partnerships get taxed as personal tax rate, instead of corporate tax rate
Partnerships only have one level of taxation, while corporations get taxed twice (once at
entity level, again when distributed to stockholders) Correct Ans-Why would a LLC elect to
be taxed as a partnership?
Ease: Simple
Legal liability: No limit (No shield between personal assets and business assets)
Taxation: Nontaxable (considered accounting fiction)
Limited life: Yes
, MBA 5100- Exam 1(Summer 2024/25- A01) Questions
and Answers
Capital access: Limited Correct Ans-Proprietorship: Ease of formation, legal liability,
taxation, life, and capital access
Ease: Simple
Legal liability: No limit
Taxation: Nontaxable (considered accounting fiction)
Limited life: Yes
Capital access: Average Correct Ans-Partnership: Ease of formation, legal liability, taxation,
limited life, and capital access
Ease: Complex
Legal liability: Limited
Taxation: Nontaxable
Limited life: No
Capital access: Extensive Correct Ans-Corporation: Ease of formation, legal liability,
taxation, life, and capital access
Ease: Moderate
Legal liability: Limited
Taxation: Nontaxable
Limited life: Yes
Capital Access: Average Correct Ans-LLC: Ease of formation, legal liability, taxation, life, and
capital access
Depends on how business plans to gain advantage over its competitors to make money and
maximize profits
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller TheeGrades. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
62890 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now