MHA 706 MIDTERM- LORD EXAM WITH COMPLETE SOLUTIONS RATED A+

MHA 706 MIDTERM- LORD EXAM WITH COMPLETE SOLUTIONS RATED A+
Question 1: What are the pros and cons of proprietorships
and partnerships?
CORRECT ANSWER: Pros: Ease of Information,
Subject to a few regulations, no corporation income taxes.
Cons: Limited life, difficult to transfer, unlimited liability,
difficult to raise capital.
Question 2: What are the pros and cons of corporations?
CORRECT ANSWER: Pros: Unlimited life, easy
transfer of ownership, limited liability, ease of raising
capital. Cons: Cost of formation and reporting, double or
triple taxes must be paid.
Question 3: What is a non-profit organization?
CORRECT ANSWER: Exempt from taxes. Goal is to
improve community.

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