Sole Proprietorship
The number of people who own a sole proprietorship
What is One?
A voluntary association of one or more persons as co-owners of a business.
What is a partnership?
an artificial person created by law with most of the legal rights of a real person
What is a corporation?
The type of business that represents 99.9% of all employer firms
What is a small business
What the initials SBA stands for
What is the Small Business Administration
In 2017 the percentage of businesses that were sole proprietorships in the USA.
What is 72%?
The legal maximum on the numbers of partners in a partnership.
What is no maximum?
A person who owns a corporation's stock
What is a stockholder/
Lack of management skills, capital, and cash-flow problems.
Why do Entrepreneurs and small businesses fail?
A corporation that has a maximum of 100 shareholders and there can be only one class of stock
What is an S-corporation?
Two advantages of a Sole Proprietorship
What is
a. ease of start-up?
b. retention of all profits?
c. single taxation?
d. being your own boss?
Two advantages of partnerships
What is
1. Ease of start-up?
2. Combined business skills?
3. Retention of profits?
4. no special taxes?
A corporation that can buy and sell stock
What is an open corporation?
A license to operate anindividually owned business as though it were part of a chain of outlets and stores.
What is a franchise?
A sole proprietor can be sued for everything because they have
What is unlimited liability?
Two disadvantages of a small business
What is
1. unlimited liability?
2. lack of money
3. lack of continuity?
4. limited management skills?
Two disadvantages of partnerships
What is
1. unlimited liability?
2. management disagreements?
3. lack of continuity?
Corporations are taxed in this method
What is double taxation?
Two advantages of franchising to the franchisee
What is
1. Start a business with limite capital
2. Receives advice from the franchisor
3. Can participate in national promotional campaigns
4. able to minimize cost of advertising
The type of stock that dividends are paid first
What is the preferred stock?
One can lose all of their personal resources
What is an unlimited liability?
A person who invests money in a business but has no management responsibility and is only liable for the amount invested in the business
What is a limited partner?
A corporation doing business in any state except the state where it is incorporated
What is a foreign corporation?
The person granting the franchise
What is the franchisor?
A group of business-people who volunteer their services through the SBA
What is Score?