Sole Proprietorships
This percentage of businesses in the United States are sole proprietorships.
What is 60-70%?
This type of partnership has at least one genera partner and at least one limited partner.
What is a limited partnership?
The company that sells the right to open a franchise is called this.
What is a franchiser?
This type of merger occurs when two firms in the same industry combine to create a larger, more competitive company.
Nonprofit organizations are exempt from this tax, as long as they meet specific IRS requirements.
What is income tax?
One major advantage of a sole proprietorship is that the owner gets to keep 100% of this.
What is the profit?
In this common form of partnership, all partners share equally in responsibility and liability.
What is a general partnership?
One big advantage of buying a franchise is gaining access to this already-established reputation.
What is brand recognition (or built-in reputation)?
The primary advantage of incorporating for stockholders, which limits their personal responsibility for debts of the corporation.
What is limited liability?
This nonprofit organization works to improve the working conditions and skill levels of people in specific occupations, such as teachers and lawyers.
What is a professional organization?
The legal responsibility to pay all business debts personally is known by this term.
What is unlimited personal liability?
This type of partnership protects all partners from being responsible for another partner's mistakes.
What is a limited liability partnership (LLP)?
A major disadvantage of owning a franchise is that owners are often limited to selling only these.
What are approved products?
This is the main group responsible for overseeing the management of a corporation and making its major decisions.
What is the board of directors?
This is the minimum percentage of earnings that must be paid out to members of a cooperative in order for it to maintain its tax-exempt status.
A certificate of occupancy or a business license are examples of these legal requirements needed to start a sole proprietorship.
What are authorizations or permits?
What is conflict?
This type of support is provided by the franchiser to help owners learn how to run the business successfully.
What is management training and support?
This type of corporation is owned by stockholders who can buy and sell shares of stock on the open market, typically through stock exchanges like the NYSE.
What is a publicly held corporation?
Unlike corporations, nonprofit organizations are restricted in this area of activity, especially when it comes to influencing laws and legislation.
What is lobbying?
This disadvantage means a sole proprietorship might end if the owner retires, becomes ill, or dies.
What is lack of permanence?
One advantage of partnerships is that they can raise more of this than sole proprietorships.
What is capital?
This fee is a regular payment a franchise owner must make to the parent company based on earnings.
What is a royalty?
These corporations have operations in multiple countries, often with headquarters in one nation and branches in others.
What are multinational corporations (MNCs)?
What is a producer cooperative?