Sole Proprietorship
This business form is the easiest, quickest, and least expensive to start.
What is a sole proprietorship?
A partnership is a ______ association of two or more people to carry on as co-owners of a business for profit.
What is voluntary?
A corporation is a ______ legal entity.
What is separate?
An LLC combines advantages of these two traditional business types.
What are corporations and partnerships?
When two companies voluntarily join to form one, it’s called this.
What is a merger?
The biggest financial downside of a sole proprietorship.
What is unlimited personal liability?
In a general partnership, partners share risk and wealth equally and have this type of liability.
What is unlimited liability?
Stockholders have limited power, but this is one key right they retain.
What is voting rights (through a proxy)?
The “pass-through” feature of an LLC means it avoids this disadvantage of corporations.
What is double taxation?
When one company buys another, it’s called this.
What is an acquisition?
In a sole proprietorship, credibility is only as strong as this.
What is the owner’s personal reputation?
This type of partner has no mutual agency and limited liability.
What is a limited partner?
The disadvantage of “double taxation” refers to taxes on both ______ and ______.
What are corporate profits and shareholder dividends?
This business certification, granted by B Lab, focuses on People, Planet, and Profit.
What is a Benefit Corporation (B Corp)?
When firms in the same industry combine, it’s known as this type of merger.
What is a horizontal merger?
Sole proprietors have this level of control over decisions.
What is total control?
The term for each partner being legally bound by the actions of the others.
What is mutual agency?
Corporations can issue these two main types of stock.
What are common and preferred stock?
Stakeholder capitalism expands a company’s responsibilities beyond shareholders to include these groups.
What are employees, customers, suppliers, and the community?
A merger between a supplier and a distributor is called this.
What is a vertical merger?
One reason a sole proprietor may struggle to expand.
What is difficulty raising additional capital?
One major challenge of partnerships that corporations avoid.
What is limited access to capital or limited life?
The term for a corporation that operates in a different state than the one it was incorporated in.
What is a foreign corporation?
A key reason some entrepreneurs choose an LLC instead of incorporating.
What is flexibility or reduced regulatory burden?
When two companies from completely unrelated industries combine.
What is a conglomerate merger?