LGS 200 Exam 3 Charlye Adams Exam Questions and Answers (Solved Papers) entrepeneur - Correct Answers ✅a person who forms and operates a business these are the people who START business entities, LLC, sole proprietorship, partnership sole proprietorship - Correct Answers ✅individual business owner is the business. SIMPLE AND EASY no separate buisiness return for federal income taxes disadvantages of a sole proprietorship - Correct Answers ✅UNLIMITED personal liability. Creditors can satisfy a sole proprietor's business debts through his/her personal assets
class example: I start a sole proprietorship. I borrow money
from the bank, then I bring in a partner at a later date. If I default on that loan, I AM the only person responsible for that loan, the bank will come after MY personal assets governing documents (EXCLUDING SOLE PROPRIETORSHIP) - Correct Answers ✅If the duration of business entity is longer than one year, that contract must be in writing due to statute of frauds General partnership - Correct Answers ✅Essential
elements:
-sharing of profits and losses -joint ownership of business 1 / 2
LGS 200 Exam 3 Charlye Adams Exam Questions and Answers (Solved Papers) -equal right in management of business goodwill is NOT an essential element partnership (both general and limited) - Correct Answers ✅GENERAL partner has unlimited liability. if the partnership does not have sufficient assets, creditors will go after the general partner general vs. limited partnership - Correct Answers
✅GENERAL: general partners only
LIMITED: at least one general and one limited
general-day to day operations limited-capital contributions $ partnership taxation - Correct Answers ✅pass through taxation profits and losses reported on income tax returns of
INDIVIDUAL PARTNERS
management rights of partners - Correct Answers ✅Need unanimous consent for bringing in new partner
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