.
True or false:
A general partner is responsible for any debts of the partnership, regardless of whether he or she was directly involved in the transaction that created the debt.
True
Fill in the blank:
Various charities, museums, private schools, colleges, and charitable organizations are all______.
Non profit organizations/Corporations
Fill in the blank:
_____ is a business structure in the U.S. that protects its owners from personal responsibility for its debts or liabilities.
LCC
Multiple choice:
What does LLC stand for ?
1- Limited Leveraged Company
2- Limited Labor Company
3- Limited Liability Company
4- Limited Liability Partnership
Limited Liability Company
True or false:
Compared to a corporation, a partnership is more difficult and expensive to establish.
False
Fill in the blank:
A ___ invests money in the business but has no management responsibility.
Limited partner
True or false:
Unlimited liability is an advantage of a sole proprietorship.
False
What are advantages & disadvantages of Limited Liability Companies?
- No restrictions on the number of members allowed
- More expensive to form than sole proprietorships and general partnership
What are the advantages & disadvantages of Corporation?
- Perpetual life. There is no limit to the life of a corporation, since ownership of it can pass through many generations of investors.
- Double taxation.
Fill in the blank:
_____ an agreement between two or more groups to form a business entity in order to achieve a specific goal or to operate for a specific period of time.
Joint Ventures
Real life example of Partnership:
- GoPro & Red Bull
- Pottery Barn & Sherwin-Williams
- Casper & West Elm
- Bonne Belle & Dr. Pepper
Real life example of Limited Liability Companies:
- Blackberry
- Pepsi-Cola
- Sony
- Nike
Real life example of Non-Profit Organization:
- Greenpeace
- Human Rights Campaign
- Charity
- Social Tees Animal Rescue
Real life example of Corporation:
- Amazon
- Apple
- Walmart
- Microsoft
Real life example of Joint Ventures:
- BMW and Brilliance Auto Group
- Microsoft and General Electric
- The Walt Disney Company
- News Corporation, Comcast's NBC Universal
The most effective form of business organization for raising capital is the______
Corporation
A partnership formed to operate for a specific time period or to accomplish a specific purpose is known as a_
Joint Venture
The order of difficulty and expense, from most to least, when forming a business organization is ( Sole/ partnership/ corporation )
Corporation, partnership, sole trader.
A legal concept that holds a business owner personally responsible for all the debts of the business
Unlimited liability
What are 2 difficult things in a Sole Proprietorship that are easy in a Corporation?
Sole trader has limited liability and lack of money.