Definition
Independent business, shareholders own
Corporation
What business structure is characterized by the owner being personally responsible for all the business's debts and legal actions?
A. Corporation
B. LLC
C. Sole Proprietorship
D. Partnership
C. Sole Proprietorship
Personal Liability
Business owned and operated by one person
Sole Proprietorship
Which of the following is NOT a characteristic of a corporation?
A. Ability to issue stocks
B. Limited liability for its shareholders
C. Profits are taxed at both the business and personal levels
D. Owners directly pays business taxes on personal tax returns
D. Owners directly pays business taxes on personal tax returns
The average is $35,250
Sole Proprietorship
Process to form a corporation
Incorporation
In which business structure can profits pass directly to the owners without being taxed at the business level but still provide some liability protection?
A. Sole Proprietorship
B. Corporation
C. LLC
D. Non-profit Organization
C. LLC
The average is from $150 to $3,000
LLC
Individual's risk for business debts
Personal Liability
What is the term used to describe the legal concept that prevents creditors from going after a business owner's personal assets in certain types of business entities?
A. Personal Liability
B. Corporate Veil
C. Double Taxation
D. Sole Proprietorship
B. Corporate Veil
The average price is from $1,500 to $5,000
Corporation
Business model shielding personal assets from company debts
LLC
Which of the following is a key aspect of a successful business plan?
A. Identifying your target market and understanding their needs.
B. Setting a strict budget and ignoring customer feedback.
C. Ignoring legal requirements and regulations.
D. Starting operations without a clear vision or strategy.
A. Identifying your target market and understanding their needs.
The average price is to $50 to $300
Incorporation