Potpourri
What does LLC stand for?
Limited Liability Company
What is a sole proprietorship?
A business owned and operated by one person
What is a Partnership?
A business owned and operated by 2 or more people
What is a corporation?
a company or group of people who act as a single person
the process of creating, expanding, manufacturing, or improving goods and services
what is production
This business offers liability protection for its owners; also, it is considered an independent entity.
Corporation
What are advantages of having a sole proprietorship?
total control of business, easy startup, minimal capital needed, no business name needed, business expenses can be used to reduce taxable income
advantages of having a partnership
two or more people can contribute to the investments
added expertise to the business
good for people who share an idea for a business and work well together
What is an open corporation?
a corporation whose ownership shares are available for exchange on a public market
a business that moves goods from one business to another
intermediary or wholesaler
a business that changes raw materials into more finished products
what is processor
What are disadvantages of having a sole proprietorship?
need to obtain required licenses and permits, limited capital and business skills, taxes will have to be paid on profits, all risk placed on owner
disadvantages of having a partnership
no protection for personal assets in case of debt
each partner is responsible for decisions made by the other partner
each partner can lose more than the amount originally invested
if partner chooses to leave the partnership dies
What is a Subchapter (S) Corporation?
offers the limited liability of a corporation; all income is passed through to the owners based on their investment and is taxed on their individual tax returns
a business that purchases goods from a wholesaler and sells them to consumers, the final buyers of the goodsWhat is a board of directors?
what is retailer?
a business that gathers raw goods
what is producer?
What is an example of a business that may utilize sole proprietorship ?
Answers will vary
One of the disadvantages of a partnership
what is ......answers will vary
What is a Limited Liability Corporation (LLC)?
a combination of a partnership and corporation; provides liability protection for owners
the buying and reselling of goods and services that have already been produced
what is procurement
a business that makes finished products out of processed goods
What is manufacturer
Within 10 percent, what is the percentage of Sole Proprietorship businesses in the U.S.?
Approximately 75% of businesses are Sole Proprietorships....according to 2022 Census Data , 73.1 percent of all businesses were sole proprietorships (20.3 million firms). 13.1 percent of all businesses were S corporations (3.65 million firms), and about 8 percent were partnerships (2.2 million firms).
examples of business that may utilize partnerships
answers may vary - lawyer, accounting firm
What is the Articles of Incorporation?
a set of documents filed with a government body for the purpose of legally documenting the creation of a corporation
maintaining and checking records, handling bills, and preparing financial reports for a business
what is accounting?