sole propriotorship
how many people own a sole proprietorship?
In a limited partnership, this partner typically invests capital but has limited involvement in day-to-day operations.
who is a limited partner
This document, filed with the state to establish a corporation, outlines its name, purpose, and structure.
what is articles of corporation
This type of liability is a short-term debt that must be paid within one year, such as accounts payable.
what are current liabilities
This type of financing involves borrowing money from a bank or financial institution that must be repaid with interest.
what is debt financing
In a sole proprietorship, the owner is personally responsible for this, including debts and liabilities.
what is personal liability
This legal agreement between partners outlines their rights, responsibilities, and profit-sharing arrangements.
what is a partner agreement
This term refers to the limited liability protection that shareholders of a corporation have, meaning they are not personally responsible for the company's debts.
what is limited liability
This liability represents amounts owed to employees for work performed but not yet paid, such as wages payable.
what is accrued liabilities
This form of financing involves raising capital by selling ownership shares in the company.
what is equity financing
his is the main advantage of a sole proprietorship, as it allows for this type of control.
what is complete control, or decision making authority
Partnerships are often favored for their ease of formation and pass-through taxation, which means profits are taxed at this level.
what is the individual partner level
This corporate structure allows profits to be taxed both at the corporate level and again when distributed as dividends.
what is a c corporation
This long-term liability involves borrowed money that is paid back over several years, often used to finance large projects or purchases.
what is long term debt
This financial instrument is a short-term loan that a company can use to meet immediate cash needs, often secured by inventory or receivables.
what Is a line of credit
To legally start a sole proprietorship, the owner must obtain this document from the government.
This form of business partnership is common among professionals like lawyers, doctors, or accountants who want to collaborate but maintain some individual control.
what Is a professional partnership
This type of corporation is often used for non-profit organizations and is exempt from paying federal income taxes.
what is a non-profit orginization
This liability appears on the balance sheet and is the amount a company owes to the government for taxes due.
what are tax payable liabilities
This type of financing is often provided by venture capitalists or angel investors in exchange for ownership equity or convertible debt.
what is venture capital financing
This tax form is typically filed by sole proprietors to report their business income and expenses.
What is Schedule C (Form 1040)?
This term describes the process where two or more firms agree to collaborate on a project or business venture, sharing resources and risks.
what is strategic alliance
This process involves a corporation issuing shares of stock to raise capital from investors.
What is initial public offering (IPO)
This liability is recorded when a company receives cash before providing goods or services, representing an unearned revenue.
what is unearned liabilities
his form of financing provides funds through bond issuance, where the company agrees to pay back the borrowed amount with interest at a later date.
what are bonds, or debt securities