Brainscape's Knowledge GenomeTM


Top Flashcards (Certified)
All Flashcards

PT Admin > Lecture 6: Business Structure > Flashcards

Lecture 6: Business Structure Flashcards

(73 cards)

Start Studying
1
Q

A business structure operating configuration includes there 6 things:

A 
Legal structure
Ownership
Vision
Mission
Assumption about the behavior of the employees
Business performance
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Deciding your structure:

Make sure your consultants know these 2 things

A

Health care

State law and accounting

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Deciding your structure:

You should consult with these 4 people

A

Lawyer
Accountant
Financial advisor
Tax advisor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Legal structure:

\_\_\_\_\_\_ proprietorship
\_\_\_\_\_\_ partnership
\_\_\_\_\_\_ partnership
\_\_\_\_\_\_\_\_\_ (\_\_ or \_\_\_)
\_\_\_\_\_\_\_ corporation
\_\_\_\_\_\_ \_\_\_\_\_\_ company
A 
Sole
General
Limited
Corporation (C or S)
Personal
Limited Liability
How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Government does not like _____ _______

A

Independent contractors — tax advantages

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Cannot be _______ contractor unless you fit certain criteria

A

Independent

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

What is the difference between a contractor and employee

A

A contractor will see a few home care patients for different organizations

An employee will treat home care patients for the same organization

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Cannot be an independent contractor unless you have ________

A

Expertise

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

If you have a SET schedule that you were given, you are not a _____ _____

A

Independent contractor

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Sole Proprietorship:

Any ___________ _____ will by default become a sole proprietorship if you do not _______ _________

A

Unincorporated business

Deliberately choose

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Sole Proprietorship: This is a _______ position

You will be a sole proprietor if you make no other _______ to organize in any other way

A

Default

Attempt

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Sole proprietorship is _____, no one else

A

SOLO

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Sole Proprietorship:

You have a _____ ____ ____ instead of SSN

A

EIN Tax ID

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Sole proprietorship characteristics:

_____ and _______ to form

A

Easy and inexpensive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Sole proprietorship characteristics:

Owner has ______ _____, takes all of _______

A

Full control

Profit

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Sole proprietorship characteristics:

Tax: Business profit is the owner’s _______ ______

A

Personal income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
17
Q

Sole proprietorship characteristics:

You have unlimited ______ ________

A

Personal liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
18
Q

Partnership:

More than _____ ______

A

One owner

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
19
Q

Partnership:

______ to form

A

Inexpensive

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
20
Q

Partnership:

Business profit treated as _____ _____

A

Personal income

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
21
Q

Partnership: Profit is divided ______ ____ ______

A

Between the partners

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
22
Q

Partnership: Pay taxes at own ____ ____, even if the tax rates are different

A

Tax rate

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
23
Q

Partnership: Unlimited _____

A

Liability

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
24
Q

Partnership:

If partner messes up, you are not liable for their actions (true or false)

A

False, you are liable!

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
25
Limited partnership: ______ partners have a financial interest in the business They are not permitted to be involved in the ____ ____ ____ operation of the business
Silent Day to day
26
Is a partnership agreement required by law?
No
27
Partnership agreement: Very important to clearly define the ____ of the parters
ROLE
28
Partnership agreement: Clearly spells out what will happen if one partner _______ the Practice
Leaves
29
Partnership agreement: Sets the framework fo discussion of _______ of the practice
Aspects
30
Corporation: A legal _______ of the business from its owners
Separation
31
Corporation: The Corp has a ____ ____ _______ that control the corporation
Board of directors
32
Corporation: The board appoints the _______ officers
Corporate
33
C-Corporation: Legal entity separate from owners formed under ____ _____
State law
34
C-Corporation: Is this expensive or inexpensive to form?
Expensive!! Can be expensive to maintain Corporate tax and tax on owners share (double tax)
35
C-Corporation: Limits ______ _______
Personal liability
36
C-Corporation: | Easy to _______ ownership
Transfer
37
C-Corporation: Easiest to raise _____ from ______ sources
Capital Outside
38
S-Corporation: Advantages of _______ personal liability and _____ _____ tax treatment
Limited Pass through
39
S-Corporation: Shareholders are limited to ___ and must be ____ _______ or ___ ______
35 US citizens Resident aliens
40
S-Corporation: What are the advantages?
Ease of transfer of business Ease of raising capital
41
S-Corporation: What is the disadvantage?
High regulation and legal restrictions
42
Personal Service Corporation: For individuals who are the _______ and the _______ of the service Must be the _____ _______
Owners and providers Same profession
43
Personal Service Corporation: States use the designation of PC for _______ ______ or SC for _______ _______
Personal corporation Service corporation
44
Personal Service Corporation: All profits can be put back into the business leaving no _______ _____ to pay
Corporate tax
45
Personal Service Corporation: _____ _________ etc. can be deducted
Health insruance
46
Personal Service Corporation: Is it costly to form?
NO
47
Personal Service Corporation: Is there personal liability protection?
NO
48
Which legal structure is most popular?
The limited liability company
49
The Limited Liability Company: The LLC has been around since _____
1988
50
The Limited Liability Company: Taxed like a ________ Tax pass though, no ________ tax
Partnership Corporate
51
The Limited Liability Company: It is ________ business form regulated in every state
Unincorporated
52
The Limited Liability Company: Legally it is ______ from its owners
Separate
53
The Limited Liability Company: They are regulated differently in each ______
State
54
The Limited Liability Company: LLC is technically not legal for ____, but ____ not excluded from literature necessarily
PTs PTs
55
Tax status: list the two
For profit or not for profit
56
Tax status has to do with what you do with _____ once you have it
Money
57
Not for profit means that you need to be ______ with a certain ______ and _______
Organized Vision and mission
58
How is tax status determined? What is something that is NOT easy?
Qualifying for tax exempt status
59
How is tax status determined? The __________ of the business Does money provide the _____ to pay for care? Is money the ____ itself?
PURPOSE Means Means
60
How is tax status determined? How are the ______ used? Money used to provide ____ for those that cannot pay OR Money _______ among the owners?
Profits Care Divided
61
For profit business: Provides a _______ or _______ to make money for its _______
Service Goods Owners
62
For profit business: Can be ______ or ________ Taxes are paid on the ______
Private or public Profits
63
For profit business: Remaining ______ can be distributed to the owners
Profits
64
For profit business: Examples?
Private practices | Corporations
65
Not for profit business: Tax _______ federal, state and local taxes Must apply to the ____ for this status
Exempt IRS
66
Not for profit business: The business must be involved in some type of ______ ______
Community service
67
Not for profit business: Cannot provided financial benefit to any _____ _______ or _____ _______
Private individual FP business
68
Not for profit business: Non profits are a _______ on the community Why?
BURDEN Lost tax revenue Community expenses: fire, police
69
What are the three types of ownership?
Public Private Government
70
Ownership: Public?
stock is available for purchase
71
Ownership: Private?
Owned by individuals, or privately held group
72
Ownership: Government?
Owned by the federal, state or local government | Usually not for profit and tax exempt
73
The correct business structure: Best structure must be determined based on the _______ ________ This will determine the legal structure, _____ _____ and _____ _____ of the business
Business objectives Tax status, operating structure

PT Admin (12 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2025 Bold Learning Solutions. Terms and Conditions