Vocab
What is an LLC?
A Hybrid business structure where it combine the operational characteristics of a sole proprietorship or partnership while limiting the liability of the investors to the amount they invest.
What is a Partnership
A business owned by two or more people.
What is an S- Corp?
Similar to C-Corp but is limited by the number of owner it can have, avoids double taxation.
Chic-Fil-A, Taco Bell, Wendy's, KFC
Business format Franchise
What are the pros to a LLC
No double Tax
Easy to start
What is a solopreneur?
Business ran by one person
Non Profit Corporation
Provide some public service and gets special tax treatment.
Private Corporation?
Small group of owners, no public stock sold, no reports to the public and double taxed.
Riata Ford
Product Trade Name Franchise
What are the pros to a C-Corp
Corporate tax may be lower than personal tax.
Multiple classes of stock.
A must if company decides to go public.
What's a sole proprietor?
A business owned by one person and they have unlimited liability for the business. Also this business is easy to start.
Merger
Corporation?
Legal entity that is separate from its owners and controlled by a board of directors. Offers limited Liability.
Victor and Manuel have a local grocery store in Austin. What partnership is this?
General Partnership.
What is a pyramid scheme and what pyramid scheme did Mr. Curtis partake in?
Forex and Primerica
When a business experiences growth.
Joint Venture
Two or more companies cooperate to perform a specific task.
C-Corp
Sell shares to public
Double tax
Loss limited
Owners called StockHolders
Chris Gardner Created his own Investment fund. What is this Partnership?
Limited Partnership
What is the average number of employees of a small business?
10
Consolidation
Bringing together multiple companies to form one larger company.
Retail franchise inside of larger facility
Piggyback Franchise
B-Corp
Explicitly public benefits and reports annually to the public.
Kevin has several doctors/nurses at his Med Clinic. What is this partnership?
Limited Liability Partnership
How do LLC's raise money?
By selling units