A business that is owned and usually managed by one person.
What is a sole proprietorship.
100
Ease of starting and ending the business.
What is an advantage of sole proprietorship.
100
Disagreement of partnerships.
What is a disadvantage of partnerships.
100
All owners share in operating the business and in assuming liability for the business's debts.
What is a general partnership.
100
A state-chartered legal entity with authority to act and have liability separate from its owners.
What is a conventional corporation or C corporation.
200
A legal form of business with two or more owners.
What is a partnership.
200
Few fringe benefits. No sick time, vacations, paid day care, etc.
What is a disadvantage of sole proprietorship.
200
No special taxes and longer survival.
What is an advantage of partnerships.
200
One or more general partners and one or more limited partnerships.
What is a limited partnership.
200
A unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships
What is an S corporation.
300
A legal entity with authority to act and have liability apart from its owners.
What is a corporation.
300
More financial resources, shared management and pooled skills and knowledge.
What are advantages of partnerships.
300
Management difficulties, limited growth.
What are disadvantages of sole proprietorships.
300
An owner who invests money in the business but does not have any management responsibility or liability for losses beyond the investment.
What is a limited partner.
300
The result of two firms forming one company.
What is a merger.
400
Makes up 72% of all businesses in the US.
What is a sole proprietorship.
400
Limited liability, ability to raise money for investment, size, perpetual life, ease of ownership change, separation of ownership from management.
What advantages of corporations.
400
Unlimited liability and limited financial resources.
What are disadvantages of sole proprietorships.
400
The responsibility of a business’s owners for losses only up to the amount they invest; limited partners and shareholders have limited liability.
What is limited liability.
400
One company’s purchase of the property and obligations of another company
What is an acquisition.
500
Makes up 81% of all total receipts in the US.
What is a corporation.
500
Unlimited liability, division of profits, difficulty of termination.
What are disadvantages of partnerships.
500
two tax returns, double taxation, extensive paperwork, initial cost.
What are disadvantages of corporations.
500
A partnership that looks much like a corporation (in that it acts like a corporation and is traded on a stock exchange) but is taxed like a partner¬ship and thus avoids the corporate income tax.
What is a Master Limited Partnership (MLP).
500
a company similar to an S corporation but without the special eligibility requirements. These were introduced in Wyoming in 1977 and by 1996, all 50 states recognized them.