Sole Proprietorship
What type of business ownership involves a single individual who owns and operates the business?
What is a sole proprietorship?
What type of business ownership involves two or more individuals sharing ownership and management responsibilities?
What is a partnership?
What type of business ownership is considered a legal entity separate from its owners, providing limited liability to shareholders?
What is a corporation?
What type of business ownership combines the limited liability protection of a corporation with the flexibility and tax benefits of a partnership?
What is a Limited Liability Company (LLC)?
What type of business ownership is formed by individuals or businesses who pool resources and share both the risks and rewards of the enterprise?
What is a cooperative
What is the most common form of business ownership for small businesses around the world?
What is a sole proprietorship?
In a general partnership, how are profits and losses typically shared among partners?
What is equally or according to the partnership agreement?
In a corporation, what are the owners/shareholders entitled to in return for their investment?
What are shares of stock?
In an LLC, how are profits and losses typically allocated among the members?
What is based on the operating agreement or membership percentages?
Name one significant advantage of a cooperative in terms of purchasing power.
What is the ability to purchase goods and services in bulk, often resulting in cost savings for members?
What is the primary advantage of a sole proprietorship regarding decision-making?
What is the owner has complete control over decision-making?
Name one key advantage of a limited partnership (LP) over a general partnership.
What is limited liability for some partners (limited partners)?
What term describes a corporation's first issuance of shares to the public, allowing it to raise capital from a wide range of investors?
What is an initial public offering
What is the primary advantage of an LLC regarding taxation?
What is pass-through taxation
In a consumer cooperative, who are the primary owners and beneficiaries of the cooperative's products or services?
Who are the consumers or members?
Name one major drawback or disadvantage of a sole proprietorship.
What is unlimited personal liability?
In a limited liability partnership (LLP), what level of personal liability do partners have for the actions of other partners?
What is limited personal liability
Name one advantage of a corporation in terms of raising capital.
What is the ability to raise large amounts of capital through the issuance of stocks and bonds?
Name one key characteristic of an LLC that distinguishes it from a corporation.
What is the absence of a rigid organizational structure
What is the fundamental principle that guides cooperatives, emphasizing democratic member control and participation?
What is the principle of "one member, one vote"?
In a sole proprietorship, who assumes all the risks and liabilities of the business?
Who is the owner
What type of partnership requires at least one general partner with unlimited liability and one or more limited partners?
What is a limited partnership
What is the major downside or disadvantage of a corporation in terms of taxation?
What is double taxation
In an LLC, what is the extent of the personal liability of the members for the company's debts and obligations?
What is limited liability
Give an example of a well-known type of cooperative that provides financial services to its members.
What is a credit union?