Chapter 7

Question 1

Liability

Answer 1

Debt of business

Question 2

Corporation

Answer 2

Registered by state and operates apart from its owners

Question 3

C-corporation

Answer 3

The most common corporate form

Question 4

Personality conflicts

Answer 4

Most popular reson for partners to end

Disagreement over authority

Question 5

Sole proprietorship

Answer 5

L A business that is owned and operated by one person

Question 6

Communities

Answer 6

A

Question 7

Subchapter S corporation

Answer 7

Legal form that avoids double taxation

Question 8

Limited partners

Answer 8

The partners liability is limited to their investment

Question 9

LLC

Answer 9

A

Question 10

Liability protection

Answer 10

Insurance

Question 11

Non-profit

Answer 11

A

Question 12

Whats the primary function of SBA

Answer 12

A

Question 13

Whats SBA

Answer 13

A

Question 14

What distinguishes a small business from a large business

Answer 14

A

Question 15

Limited liability company

Answer 15

A hybrid legal form for a business

Corporate shareholders have this

Question 16

Limited liability company

Answer 16

A form of business organization that has limited liability for its members and also has the pass-through tax advantage of partnership

Question 17

Partnership

Answer 17

2+ owners

Question 18

Unlimited liability

Answer 18

Full responsibility for all losses debts and actions

Question 19

Liability insurance

Answer 19

A

Question 20

General partner

Answer 20

A y partner with unlimited liability

Question 21

Corporate owners aka

Answer 21

Shareholders

Question 22

Nonprofit corporation

Answer 22

Profit remain with in the corporation

Question 23

Partnership agreement

Answer 23

A written document between partners to spell out duties and responsibilities

Not legally required but should have one

Question 24

To decide whether a sole proprietorship is right for you ask yourself

Answer 24

How much liability protection you need whether you need investment capital what affects the business will have on your tax status

Question 25

Nonprofit corporations may be set up to benefit

Answer 25

Charities. The public. Specific groups.

Question 26

Before deciding on legal form of the business you should consider your

Answer 26

Skills access to capital expenses

Question 27

Limited liability companies are popular with

Answer 27

Law and medical forms

Question 28

The legal form that offers the most protection to the owner is

Answer 28

Corporation

Question 29

What does a sole proprietor ecieve out of the business

Answer 29

Profit. Curse any losses. The liability of dept

Question 30

Advantages of a sole proprietorship

Answer 30

Business pays no tax bc its not seperate from the owners Easy and inexpensive Owner gets all the profit and authority Least regulated ownership

Question 31

Disadvantages of a Sole proprietorship

Answer 31

Unlimited liability Raising capital is more difficult Harder to get a loan or satisfy investor If the skills of the owner are limited, the business is limited Death of owner-end of business Debts may have to be paid from the owners personal property

Question 32

Family business aka

Answer 32

Mom and pop

Question 33

A new business thats a copy of on an existing model

Answer 33

A franchise

Question 34

Goodwill means

Answer 34

Loyalty to a business

Question 35

What is the best way to find a new business

Answer 35

Through networking with people in the community

Question 36

What do you need to ask yourself when buying a business

Answer 36

Why is the owner selling

Question 37

Every partnership should have at least one what

Answer 37

General partner

Question 38

Can a nonprofit company make profit

Answer 38

Yes

Question 39

What kind of ownership is the most popular when theres more than one owner

Answer 39

Partnership

Question 40

DBA

Answer 40

Doing business as... When making business name and its not ur own you must file for a dba

Question 41

Limited partner means

Answer 41

That partner has no say over the management of the business

Question 42

How does a nonprofit company make profit

Answer 42

Not the owners profit Advancement in science Education Arts

Question 43

EIN IS

Answer 43

Employees identified number If you wanna hire people in a sole proprietorship, you have to have that for tax and income perpose

Question 44

General partner meaning

Answer 44

The partner in a partnership that has unlimited personal liability and has dull responsibility of the business management

Question 45

How are partners signed parts

Answer 45

Amount of contribution at the beginning

Question 45

What happens if limited partners get actively involved in management of the business

Answer 45

They lose thier limited liability status

Question 46

Advantages of partnership

Answer 46

Inexpensive and easy They can share ideas Secure investment capital more easily

Question 47

Disadvantage of partnership

Answer 47

Compromises If one dies or wants out the whole thing ends Personality conflict: Disagreement over authority Technical disadvantage: Bound by law Liable for each others actions

Question 48

Considerations before starting a partnership

Answer 48

Each others needs | Compromise

Question 49

How to make partnership work

Answer 49

Share business responsibility Put things in writing Be honest about how the business is doing Establish an agreement