MGMT_311_Final_Exam_Study_
Guide
1. a _________ ________ is the simplest form of business Sole Proprietorship
where the owner is the business. The owner reports
his/her personal income tax return and is legally re-
sponsible for all debts and obligations incurred by the
business
2. An agreement by two or more persons to carry Partnership
on, as co-owners, a business for pro�t is called a
______________
3. a _______________ _____________ is one consisting of one Limited Partnership
or more general partners (who manage the business
and are liable to the full extent of their personal assets
for debts of the partnership) and one or more limited
partners (who contribute only assets and are liable
only to the extent of their contributions)
4. a ______________ ___________ ____________ is a hybrid form LLC (limited liability com-
of business enterprise that o ers the limited liability pany)
of the corporation but the tax advantages of a part-
nership
5. a _______________ is a legal entity formed in compli- Corporation
ance with statutory requirements. The entity is dis-
tinct from its shareholders/owners
6. a form of partnership that allows professionals to LLP (Limited Liability Part-
enjoy the tax bene�ts of a partnership while limiting nership)
their personal liability for the malpractice of other
partners
7. Sole Proprietorship 4 things will, unlimited, owners,
Method of Creation- It is created at ________ by the personal
, owner
Liability- _____________ liability
Management- Completely at the ________ discretion
Taxation- owner pays _________ taxes on business in-
come
8. Partnership 4 things agreement, unlimited,
Method of Creation- created by an ___________ of the equal, pro rata
parties
Liability- _____________ liability
Management- Each partner has a direct and __________
say in management unless otherwise stated in the
agreement
Taxation- Each partner pays a ____ _____ share of in-
come taxes on the net pro�ts, whether or not they are
distributed
9. Corporation 4 things statutory, limited, not,
Method of Creation- Authorized under _________ laws elect, double taxation
under the states corporation laws
Liability- ________ liability of shareholders, sharehold-
ers _____ liable for the debts of the corporation
Management- Shareholders ______ directors who set
policy and and appoint o cers
Taxation- ___________ ____________- corporation pays in-
come tax on net pro�t, no exclusion for dividends, and
then shareholders pay income tax on the disburse-
ment of dividends that they receive
10. Limited Partnership 4 things general, limited, unlimit-
Method of Creation- Created by an agreement, at least ed, general, limited, con-
one party must be a _________ partner, and at least one
, party must be a __________ partner tributions, general, limit-
Liability-________ liability for _______ partners, ________ ed, pro rata
partners are liable only to the extent of their
__________
Management- ________ partners have equal voice (un-
less otherwise stated), while ______ partners may not
retain their current liability status if they actively par-
ticipate in mgmt
Taxation- like a normal partnership, each partner pays
a ____ ____ share of income taxes
11. LLC 4 things agreement, charter, in-
Method of Creation- created by an ___________ of the vestments, participate,
members of the company, articles of organization are not, passed through
�led and a ______ must be issued by the state
Liability-members liability is limited to the amount of
their _______
Management- members can fully _________ in mgmt or
can designate a group of persons to act on behalf of
the members
Taxation- the LLC is _____ taxed and members are
taxed personally on pro�ts "________ _______" the LLC
12. LLP 4 things quali�cation, limited,
Method of Creation- Created by agreement of the equal, pro rata
partners, a statement of ___________ if �led
Liability- It varies, but under the uniform partnership
act, liability of a partner for acts committed by other
partners is _____
Management- Same as a general partnership, part-
ners have ______ say unless otherwise stated in the
agreement
, Taxation- Same as a general partnership, each partner
pays a ____ ____ share of income taxes on net pro�ts
13. in a general partnership ownership is split ______ re- equally, 25
gardless of capital contributions, unless otherwise
stated.
So if there are four partners, and I put up 50% of the
capital in order to start the business, unless otherwise
stated I still only own _____% of the thing.
14. Some Limited partnerships set up an ____-Corporation S, LLC
or an ___ as the general partner and then individuals
who actually own the company are the limited part-
ners.
15. a person who agrees to represent or act for another agent
is an ______
16. a _______ is the person whom the agent represents or principal
acts on behalf of
17. a _________ is a person having a special duty, created �duciary
by their agreeing to act for the bene�t of another
18. the most common type of agency relationship is employer-employee
____________-__________ relationships, an example of
this would be a salesperson in a department store
19. a type of agency relationship where the agent is not employer-independent
directly controlled by the principal, just temporarily to contractor
see some purpose to an end- this would be called an
___________-____________ _________ relationship. An ex-
Guide
1. a _________ ________ is the simplest form of business Sole Proprietorship
where the owner is the business. The owner reports
his/her personal income tax return and is legally re-
sponsible for all debts and obligations incurred by the
business
2. An agreement by two or more persons to carry Partnership
on, as co-owners, a business for pro�t is called a
______________
3. a _______________ _____________ is one consisting of one Limited Partnership
or more general partners (who manage the business
and are liable to the full extent of their personal assets
for debts of the partnership) and one or more limited
partners (who contribute only assets and are liable
only to the extent of their contributions)
4. a ______________ ___________ ____________ is a hybrid form LLC (limited liability com-
of business enterprise that o ers the limited liability pany)
of the corporation but the tax advantages of a part-
nership
5. a _______________ is a legal entity formed in compli- Corporation
ance with statutory requirements. The entity is dis-
tinct from its shareholders/owners
6. a form of partnership that allows professionals to LLP (Limited Liability Part-
enjoy the tax bene�ts of a partnership while limiting nership)
their personal liability for the malpractice of other
partners
7. Sole Proprietorship 4 things will, unlimited, owners,
Method of Creation- It is created at ________ by the personal
, owner
Liability- _____________ liability
Management- Completely at the ________ discretion
Taxation- owner pays _________ taxes on business in-
come
8. Partnership 4 things agreement, unlimited,
Method of Creation- created by an ___________ of the equal, pro rata
parties
Liability- _____________ liability
Management- Each partner has a direct and __________
say in management unless otherwise stated in the
agreement
Taxation- Each partner pays a ____ _____ share of in-
come taxes on the net pro�ts, whether or not they are
distributed
9. Corporation 4 things statutory, limited, not,
Method of Creation- Authorized under _________ laws elect, double taxation
under the states corporation laws
Liability- ________ liability of shareholders, sharehold-
ers _____ liable for the debts of the corporation
Management- Shareholders ______ directors who set
policy and and appoint o cers
Taxation- ___________ ____________- corporation pays in-
come tax on net pro�t, no exclusion for dividends, and
then shareholders pay income tax on the disburse-
ment of dividends that they receive
10. Limited Partnership 4 things general, limited, unlimit-
Method of Creation- Created by an agreement, at least ed, general, limited, con-
one party must be a _________ partner, and at least one
, party must be a __________ partner tributions, general, limit-
Liability-________ liability for _______ partners, ________ ed, pro rata
partners are liable only to the extent of their
__________
Management- ________ partners have equal voice (un-
less otherwise stated), while ______ partners may not
retain their current liability status if they actively par-
ticipate in mgmt
Taxation- like a normal partnership, each partner pays
a ____ ____ share of income taxes
11. LLC 4 things agreement, charter, in-
Method of Creation- created by an ___________ of the vestments, participate,
members of the company, articles of organization are not, passed through
�led and a ______ must be issued by the state
Liability-members liability is limited to the amount of
their _______
Management- members can fully _________ in mgmt or
can designate a group of persons to act on behalf of
the members
Taxation- the LLC is _____ taxed and members are
taxed personally on pro�ts "________ _______" the LLC
12. LLP 4 things quali�cation, limited,
Method of Creation- Created by agreement of the equal, pro rata
partners, a statement of ___________ if �led
Liability- It varies, but under the uniform partnership
act, liability of a partner for acts committed by other
partners is _____
Management- Same as a general partnership, part-
ners have ______ say unless otherwise stated in the
agreement
, Taxation- Same as a general partnership, each partner
pays a ____ ____ share of income taxes on net pro�ts
13. in a general partnership ownership is split ______ re- equally, 25
gardless of capital contributions, unless otherwise
stated.
So if there are four partners, and I put up 50% of the
capital in order to start the business, unless otherwise
stated I still only own _____% of the thing.
14. Some Limited partnerships set up an ____-Corporation S, LLC
or an ___ as the general partner and then individuals
who actually own the company are the limited part-
ners.
15. a person who agrees to represent or act for another agent
is an ______
16. a _______ is the person whom the agent represents or principal
acts on behalf of
17. a _________ is a person having a special duty, created �duciary
by their agreeing to act for the bene�t of another
18. the most common type of agency relationship is employer-employee
____________-__________ relationships, an example of
this would be a salesperson in a department store
19. a type of agency relationship where the agent is not employer-independent
directly controlled by the principal, just temporarily to contractor
see some purpose to an end- this would be called an
___________-____________ _________ relationship. An ex-
