Exam (elaborations)
BLAW EXAM 3 questions with 100% correct answers
- Module
- Institution
BLAW EXAM 3 questions with 100% correct answers
[Show more]
Seller
Follow
BravelRadon
Reviews received
Content preview
BLAW EXAM 3All of the following are methods that a sole proprietorship can raise money except - correct answer
✔✔Sell ownership in the business
Which of the following is true about a sole proprietorship? - correct answer ✔✔The owner reports
income and expenses on the owner's own tax return
The person who is entitled to the profits of a business based on the percentage of ownerships is - correct
answer ✔✔Principal
Reid Sterling owns a sole proprietorship called Dunkle Distributing. Dunkle Distributing is a - correct
answer ✔✔Trade Name
Which statement below is correct about a sole proprietorship? - correct answer ✔✔It has low start-up
costs and minimal filing
Gwendolyn Melvin wishes to start a children's sports store called, "Just Let 'Em Play!" as a sole
proprietor. What form must she file so that she can use another name than her own? - correct answer
✔✔DBA Certificate
Josh is a sole proprietor of an ice cream shop. Regina, a customer, slips and fall on some melted mint
chocolate chip ice cream on the floor and breaks her leg. Regina files suit and wins a judgment of
$50,000. Josh does not have any insurance and the total value of the assets of the ice cream shop is
$10,000. Which statement below is correct? - correct answer ✔✔Josh will have to use his own personal
assets to pay the remainder of the judgment
Cyndy is a sole proprietor of a day care. She wishes to build a new playground and also purchase new
toys. She plans on doing this in stages and therefore wants a loan where she can draw against a
predetermined amount as she needs it rather than getting a lump sum loan. Which type of loan would
you recommend for Cyndy? - correct answer ✔✔Line of Credit
, Raul wants a simple method to start-up a small marketing company. The marketing firm has relatively
low revenue and expenses. Which type of business entity would you suggest? - correct answer ✔✔Sole
proprietorship
Stefan has opened a sole proprietorship bicycle shop. The business shows a net income of $100,000.
Stefan took a salary of $40,000. The remaining money is left in the bank - correct answer ✔✔At tax time,
Stefan pays taxes on $140,000
A limited partnership requires - correct answer ✔✔at least one general and one limited partner
limited partnerships are required to file a(n)________ return with the IRS each year - correct answer
✔✔information
Frank wants to leave his partnership and wants to stop being a principal. What is this process called? -
correct answer ✔✔Dissociation
The duty of a partner to act in the best interests of the partnership is called _______ duty - correct
answer ✔✔Fiduciary
Boris, Carina, and Theo have decided to go into business as a limited partnership importing and selling
exotic spices. Boris and Carina will manage the business, and Theo will have no role in the day-to-day
operations. Boris and Carina have each invested $500,000, and Theo has contributed the building and
land that the business will be operated from. Alina, a customer, contracts a rare disease from a
contaminated spice sold by the company and sues. Alina is awarded a judgment for $5 million. After she
exhausts the assets of the partnership, having the property and building sold, and seizing all other
property, $3 million remains unpaid. - correct answer ✔✔Boris and Carina each owe $3million jointly
and severally, so Alina may sue one or both of them; Theo has no additional liability
Franco and Jesse are operating as a general partnership. A question has arisen that is not covered under
their partnership agreement nor addressed by the Revised Uniform Partnership Act. What will the courts
do to resolve the situation? - correct answer ✔✔Look to common law
Redrock GP has decided to go out of the business. Selling the partnership assets and making payments
to creditors will occur during the _________ phase of the closing of partnership - correct answer
✔✔winding-up
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 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 BravelRadon. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for £12.99. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75323 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy revision notes and other study material for 14 years now