Entrepreneurship Chapter 7

Can only have up to 75 shareholders

A legal entity that makes money for reasons other than the owners’ profit

A business that is registered by a state and operates apart from its owners

Limited on ability and skills

Insurance for a sole proprietor

The owners of the corporation

Easy to raise money

A business that is owned and operated by one person

Offer shares of stock

Full responsibility for all debts and actions of the business

An unincorporated business with two or more owners

Easy and inexpensive to create

A participant in a partnership who has unlimited personal liability

A company whose owners and managers enjoy limited liability and some tax benefits

Difficult to dissolve

Owner has unlimited liability

Enjoy limited liability and some tax benefits

Most common corporate form

Entity that pays taxes on earnings. It gets double taxation.

A legal entity that makes money for reasons other than the owners’ profit

Heavily taxed

A corporation that is taxed like a partnership

Shared ideas

A partner whose liability is limited to his or her investment

Taxed like a partnership