Sole Proprietorships
Partnerships
Corporations
Corporate Structure
Terms
100
A business owned by one person.
What is a sole proprietorship?
100
Voluntary association of 2 or more people who act as co-owners of a business for profit.
What is a partnership?
100
Unlike a real person, a corporation only exists on _______.
What is paper?
100
Person who owns a corporations stock; elects the board of directors.
Who are stockholders?
100
A corporation taxed as if it were a partnership; avoids double taxation.
What is an S-Corporation?
200
True or false: Simplest form of business ownership and the easiest to start.
What is true?
200
Business partner that is liable for everything the business does and has management responsibility.
What is a general partner?
200
Artificial person with rights to start and operate a business, buy or sell property, borrow money, sue or be sued.
What is a corporation?
200
Top governing body of corporation, elected by stockholders, responsible for goals and developing plans to reach goals.
What is the Board of Directors?
200
Corporations organized to provide social, educational, religious, or other services rather than earn a profit.
What is a not-for-profit corporation?
300
True or false: The most popular form of business ownership.
What is true?
300
No management responsibility or liability for losses beyond what the individual invested.
What is a limited partner?
300
Shares of ownership of a corporation.
What is stock?
300
Hired by the officers and complete the daily tasks of the organization.
Who are employees?
300
The purchase of one corporation by another.
What is a merger?
400
Easy start-up, all profits belong to the owner, be your own boss.
What are advantages of a sole proprietorship?
400
Easy start-up, personal interest, combined skills and knowledge, profits are owners.
What are the advantages of a partnership?
400
Difficult and expensive to form, government regulations, double taxation, lack of secrecy.
What are disadvantages of a corporation?
400
Direct the work of the corporation, report results back to the stockholders and board of directors.
Who are the corporate officers?
400
Growing the current business and building new businesses.
What is an expansion?
500
Unlimited liability, lack of money, difficulty hiring employees, limited management skills.
What are disadvantages of sole proprietorships?
500
Unlimited liability, disagreements, lack of continuity.
What are the disadvantages of a partnership?
500
Limited liability, easy of raising capital, specialized management, ease of ownership transfer.
What are the advantages of a corporation?
500
The corporation is taxed on their profits and the shareholders are taxed on their earnings.
What is double taxation?
500
Combines the benefits of a corporation and a partnership, avoids double taxation, and is run by the owners.
What is a limited liability corporation?
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