Sole Proprietorship
Define Sole Proprietorship:
What is a business owned by one person?
Define Partnership:
What is a business owned by two or more people?
This is a MAJOR advantage to owning a corporation:
What is limited liability?
True or False: An LLC can be a partnership or a corporation:
True
This business ownership model is the most common:
What is Sole Proprietorship?
The owner of a sole proprietorship is the only one who receives this:
What are profits?
Partnerships have this type of liability:
What is unlimited liability?
The owners of a corporation
What are shareholders?
This is the definition of limited liability:
What is a situation in which the money invested in a corporation is at risk but investors personal possessions are not at risk if the business fails?
This business ownership model has the most government regulation:
What is a Corporation?
Sole Proprietors have this type of liability:
What is unlimited liability?
True or False: A disadvantage of having a partnership is shared talent:
What is false?
A corporation can increase capital by selling these:
What are shares or stock?
This is the maximum number of people allowed to be members of an S-Corp:
What is 100 members?
A corporation taxed like a sole proprietorship or a partnership:
What is a S-Corporation?
This is what happens to a sole proprietorship when the owner dies:
What is the business ends?
This is the definition of unlimited liability:
What is a situation where once the assets of a business are gone, the personal assets of the owners can be used to satisfy liabilities of the business?
This group is responsible for managing the goals and plans of a corporation:
What is a Board of Directors?
A major benefit of an LLC is that it combines the taxation of a sole proprietorship along with this:
What is limited liability of a corporation?
This business ownership model is regulated the least by the government:
What is a sole proprietorship?
True or False: Sole Proprietorships cannot have employees:
What is False?
Partners are motivated to work hard because they share this:
What are profits?
A corporation pays taxes on its profits and the shareholders pay taxes on their dividends. This is called:
Double Taxation
This is the main source of funding for an LLC (Limited Liability Company):
What are member owned funds?
This is money owed to others.
What is a liability?