Forms Of Ownership WOB Flashcards Preview

jeremy harmon > Forms Of Ownership WOB > Flashcards

Flashcards in Forms Of Ownership WOB Deck (18):
1

Sole Propietorship

Company owned by one person

2

Sole Proprietorship has ------- ---------.

Unlimited Liability

3

What are 4 advantages of Sole Propietorship

-simple
- single layer of taxes
- private
-control and flexibility over company

4

What are 4 disadvantages of Sole Proprietorship

Unlimited liabilities
- on your own
- shorter life span
- resource limitation

5

Partnerships

Unincorporated company owned by 2 or more people

6

4 Advantages of Partnership

-simple
- single layer of tax
- more resources
- cost sharing

7

4 Disadvantages of Partnership

- unlimited liability
- potential conflict
- expansion issues
- termination issues

8

Corporation

Legal entity different from any individual person

9

Who owns a corporation?

Owned by shareholders

10

Private vs Public Corporation

Private: public cannot buy stock

Public: anyone can buy stock

11

4 Advantages of Corporations

- limited liability
- longevity
-ability to raise capital
-liquidity

12

Longevity

Lasts a long time

13

5 Disadvantages of Corporations

- double taxation
- possible loss of control
- reporting requirements
- cost
- complexity

14

Longevity

Lasts a long time

15

Definition of Board of Directors

Group of professionals elected by shareholders

16

Board of directors are responsible for a ------
------.

Companies direction

17

Merger

2 companies that combine into one entity

18

Acquisition

buy controlling share of stock of another company

Decks in jeremy harmon Class (106):