Business

Question 1

someone who owns an unincorporated business by himself or herself.

Answer 1

Sole proprietorship

Question 2

individual, company, or organization that has legal rights and obligations

Answer 2

Legal Entity

Question 3

Anything you own that adds financial value

Answer 3

Personal Asset

Question 4

a financial institution that makes loans

Answer 4

Lending Institutions

Question 5

LLC is no longer a legal business entity so you won’t be expected to pay any fees or taxes

Answer 5

Dissolved

Question 6

An unincorporated legal entity formed between two or more person to carry on a business for profit

Answer 6

General Partnership

Question 7

The cash or assets in an LLC (or any type of entity for that matter)

Answer 7

Capital

Question 8

When one or more business owners or partners are liable for their company’s debts and tax compliance

Answer 8

Unlimited Liability

Question 9

A form of legal protection for shareholders and owners that prevents individuals from being held personally responsible for their company’s debts or financial losses

Answer 9

Limited Liability Partnership

Question 10

Protects partners from vicarious personal liability for all partnership obligations incurred while the partnership is an LLP

Answer 10

Liability Shield

Question 11

A corporation that does business in the jurisdiction in which it is incorporated

Answer 11

Domestic Jurisdiction

Question 12

Formed by two or more person under the laws of the state in which the LP forms

Answer 12

Limited Partnership

Question 13

A document required to be filed in most states with the county clerk to notify that you have formed a partnership

Answer 13

Notice Filing

Question 14

an act that provides governance for business partnerships in several U.S. states. The UPA also offers regulations governing the dissolution of a partnership when a partner dissociates.

Answer 14

Uniform Partnership Act

Question 15

A model statute that determines how a business partnership should be organized and established

Answer 15

Revised Uniform Partnership Act

Question 16

Document filed with a state to create a corporation

Answer 16

Articles of Incorporation

Question 17

Quasi-executive regulatory agency in the AZ state government

Answer 17

Arizona Corporation Commission

Question 18

the individual who files the Articles of Incorporation on behalf of a business, thereby incorporation the business with the relevant state

Answer 18

Incorporator

Question 19

The face value of a bond or the stock value stated in the corporate charter and noted in the stock certificate

Answer 19

Par Value

Question 20

the share in the ownership of a corporation

Answer 20

Shares

Question 21

Common stock and preferred stock

Answer 21

Classes of Stock

Question 22

All shares of any one class shall have the same voting, conversion, redemption, and other rights, preferences, privileges and restrictions

Answer 22

Series or Shares within Class Stock

Question 23

Forever

Answer 23

Perpetual

Question 24

A group of people, selected by the shareholders, who make the major decisions for the company

Answer 24

Board of Directors

Question 25

Formed under the laws of the state in which it is organized and is a separate entity from its owners

Answer 25

Corporation

Question 26

The owners of a company’s outstanding shares, which represents a residual portion of the corporation’s assets and earnings as well as a percentage of the company’s voting power.

Answer 26

Shareholder/Stockholder

Question 27

Outlined methods for governing the corportation

Answer 27

Bylaws

Question 28

Items that a business owns that have physical forms

Answer 28

Tangible

Question 29

An asset with no physical form

Answer 29

Intangible

Question 30

A legal document that records the transfer of ownership of an asset to a second party in exchange for moeny.

Answer 30

Bill of Sale

Question 31

Mixing your personal funds with your business funds, or using business assets for personal reasons.

Answer 31

Commingle

Question 32

A situation in which a courts put aside limited liability and hold a corporations sharedholders or directors personally liable for the corporations actions or debts.

Answer 32

Pierce the Corporate Viel

Question 33

Corps that elect to pass corporate income, losses, deductions, and credits through to their shareholders for federal tax purposes

Answer 33

Subchapter S Corporations

Question 34

This corporations profit is taxed twice - as business income entity and the shareholder level when distributed as dividends or realized as capital gains.

Answer 34

Subchapter C Corporations

Question 35

A corp which is held by a limited number of shareholders and is not publicly traded

Answer 35

Close Corporations

Question 36

A corp organized under state law to provide services by licensed professionals

Answer 36

Professional Service Corporations (PC)

Question 37

Business structure in the US that protects its owners from personal responsibility for its debt or liabilites.

Answer 37

LLC

Question 38

a specialized type of LLC used by certain licensed professionals in many states.

Answer 38

PLLC

Question 39

Document that customized the terms of a limited liability company according to the specific needs of its members

Answer 39

Operating Agreement

Question 40

Part of a formal legal document used to establish a limited liability company at the state level

Answer 40

Aritcles of Organization

Question 41

This person is both an LLC owner and someone who keeps the business running on a day-to-day basis.

Answer 41

Managers

Question 42

Owners of an LLC.

Answer 42

Members

Question 43

The “Check the box” rule the IRS implemented in 1996 to allow an LLC to be taxed as corp/partnership

Answer 43

Decision 8697

Question 44

An IRS form to elect how an LLC will be classified for federal tax purposes

Answer 44

Form 8832

Question 45

Refers to how a single member llc may be taxed