Choosing a Form of Business Ownership

1: what are the 4 types of business ownerships

Sole Proprietorships

Partnerships.

Corporations

Limited Liability Company

all of the above

2: If you want sole or primary control of the business and its activities which type of business ownership should you consider?

Corporations

Partnerships.

Sole Proprietorships

Limited Liability Company

3: A__________is a legal entity that is separate and distinct from its owners.

Corporations

Partnerships.

Sole Proprietorships

Limited Liability Company

4: __________ are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship.

Sole Proprietorships

Limited Liability Company

Corporations

partnership

5: what does LCC stand for in "business ownership"?

Least Liability Course

Liable learning Company

Limited Liability Company

Learning Liability Course

6: What are the advantages of sole proprietorships?

No corporate tax payments.

A sole proprietor has complete control and decision-making power over the business

Self-employment taxes apply to sole proprietorships.

Minimal legal costs to forming a sole proprietorship.

7: A__________is a formal arrangement by two or more parties to manage and operate a business and share its profits.

8: What are 3 disadvantages of a sole proprietorship?

Lack of Stability.

Owners are fully liable. If business debts become overwhelming, the individual owner's finances will be impacted

Raising capital is difficult.

Business continuity ends with the death or departure of the owner.

9: what are the advantages of Partnerships?

your business is easy to establish and start-up costs are low.

you'll have greater borrowing capacity

Loss of Autonomy

10: what are the disadvantages of partnerships

Emotional Issues

Future Selling Complications

Lack of Stability.

All of the Above