LIABILITY BASICS
Legal responsibility for debts and actions
What is liability
Business owned by one person
What is a sole proprietorship
Business owned by two or more people
What is a partnership
What does LLC stand for?
What is Limited Liability Company
A corporation is a separate __________ entity
What is legal entity
Liability that goes beyond your investment
What is unlimited liability
Type of liability a sole proprietor has
What is unlimited liability
Partnership where all partners have power AND unlimited liability
What is a general partnership
Main advantage of an LLC
What is limited liability
Who controls a corporation
What is a board of directors
Liability limited to what you invested
What is limited liability
One advantage of a sole proprietorship
What is easy to start / no registration required
Partnership with silent investors and limited liability
What is a limited partnership
How LLC owners are taxed
What is pass-through taxation
Document required to form a corporation
What are Articles of Incorporation
Why is liability important when starting a business?
What is it determines risk and personal financial exposure
One disadvantage of a sole proprietorship
What is owner responsible for all debts
Partnership where all partners have limited liability
What is a limited liability partnership (LLP)
What LLC owners are called
What are members
Corporation that sells stock to the public
What is a public corporation
Which is riskier: limited or unlimited liability? Explain
What is unlimited liability because personal assets are at risk
Why might someone still choose a sole proprietorship despite risk?
What is full control and simple setup
Legal document outlining roles and responsibilities
What is a partnership agreement
How LLCs raise money
What is selling units
What is stock?
What is ownership in a company