Sole Proprietorship
How many owners are there for sole proprietorship?
1
How many people are in a partnership?
two or more
Stockholder
What are the two forms of a hybrid structure?
A limited liability partnership (LLP) or a limited liability company (LLC).
What is franchising?
Selling recognized goods or services through a legal agreement between two parties.
Advantages of sole proprietorship?
- control over decisions
- no specific tax changes
- all profits go to them
What is the liability in a limited partnership?
limited lilability
Name three examples of corporations.
Some include Apple, Walmart, Microsoft, and Reebok.
What is unlimited owners/partners?
Hybrid structures can have as many members as desired.
True or False, the person establishing a franchise is responsible for building the location
True
Disadvantages of sole proprietorship?
- unlimited liability
- hard to gain capitol
- harder to sell business
What are the two main types of partnerships?
general partnership and limited partnership
What are corporations governed by?
Board of directors.
What is limited taxation?
Taxes are claimed only on individual members’ personal income tax returns.
What are the two types of franchises?
Business format, Product trade name
True or false: The owner of a sole proprietorship claim business taxes on their personal income tax returns.
True
Purpose of a partnership
to combine capital, experience, and/or abilities
How many types of corporations are there?
True.
Who is the franchisor?
Parent company
What percent of businesses in the US are sole proprietorship?
over 70% of businesses
What is the liability in a general partnership?
unlimited liability
Does a corporation have a limited life span?
No
Can you live in a different state with limited liability company?
What is a master license
A person or firm that finds franchisees in a particular location