Intro to Business - Unit 2 - Business Ownership

What does LLC stand for?

One of the major advantages of franchising is selling an already established product to an existing customer base.

LLC's also use a pass-thru tax structure...where all profits are passed thru to owners & are taxed as personal income.

A business owned by two or more people.

If you are a Limited Liability Partner & invest $50,000 in a business, but it goes bankrupt, the most you can lose is?

Which of these two partners assumes FULL responsibilty and liability?

Which coroporation type can only have 100 or less owners?

Which type of ownership dominates the US by revenue ($), NOT #?

The person who purchases the franchise rights.

The law requires all partnerships to have at least one General partner.

The company that sells the franchise rights.

When the owner of a sole propriertorship dies, the business under that owner, on paper, technically dies, too.

Corporations CANNOT be a limited liability partner.

A legal agreement that gives an individual the right to market and sell another company's product or service.

Which type of ownership is used in most startups to separate business assets from personal assets?

Business owned by one person

S Corporations can only have one class of stock.

A business formed under state or federal law and managed on behalf of its owners.

Starting a franchise can be very expensive because of the franchise & advertising fees, startup costs, and royalties.

The franchisor can terminate the agreement at any time.

Making decisions often and quickly would be a good skill to have as a sole propriertor.

Which type of corporation uses a pass-thru tax structure?

Corporations pay the lowest taxes and have the lowest regulations and costs.

Corporations' profits may face double taxation if the corporation decides to pay their shareholders dividends.

C Corporations can have multiple classes of stock that provide more voting power to certain shareholders.

Which type of corporation can have more than 100 owners?

Which corporation type pays taxes at the federal corporate rate and at the personal income rate if dividends are paid?

Which type of ownership dominates the US by #, NOT $?