Forms of Ownership
What form of business ownership has a single owner who manages the business and keeps all profits?
What is Sole Propietorship
What term refers to owners of a corporation?
What is stockholders.
What do we call people who risk time, money, and resources to start a business?
What is entrepreneurs
What percentage of U.S. businesses are considered small businesses?
What is 99.9%
What major risk do sole proprietors face where their personal assets can be taken to pay business debts?
What is unlimited liability
What type of business ownership involves two or more people acting as co-owners for profit?
What is a partnership
Who represents stockholders and sets the corporation’s mission and broad objectives?
What is board of directors
Name one reason people start small businesses.
What is Independence, financial success, flexibility and/or challenge
What funding source includes money from friends, family, or personal savings?
What is personal resources
Name one advantage of a sole proprietorship.
What is Ease of formation / Full control / Retention of profits
What business structure is legally considered separate from its owners?
What is a corporation
What type of corporation avoids double taxation by passing income directly to shareholders?
What is S corporation
Entrepreneurs often believe they control their own destiny. What is this called?
What is internal locus of control
What government agency supports and assists small businesses in the United States?
What is Small Business Administration (SBA)
Name one disadvantage of partnerships.
What is Unlimited liability / disagreements between partners / lack of continuity
What form of ownership combines limited liability protection with flexible tax treatment?
What is a Limited Liability Company (LLC)
What type of liability protects business owners from losing personal assets if the business cannot pay its debts?
What is Limited liability
Name two common characteristics of entrepreneurs.
What is vision, self-reliance, energy, confidence, tolerance of uncertainty, tolerance of failure
What type of investor funds startups in exchange for ownership and looks for high growth potential?
What is angel investor
Why do many entrepreneurs eventually switch from a sole proprietorship to a corporation or LLC as their business grows?
What is to gain limited liability protection and access to more financial resources.
What document must be filed with the state to legally establish a corporation?
What is Articles of Incorporation
What restructuring occurs when one company buys another?
What is acquisition
What type of entrepreneur starts a business because they have no other economic option?
What is necessity entrepreneur
What is a small, specialized segment of a market that small businesses often target?
What is market niche
What tax disadvantage do C corporations face when profits are taxed twice?
What is double taxation