Understanding Business Structures Flashcard

Front

What is the primary document required to legally form a corporation?

Back

Articles of Incorporation

Front

Which type of business structure is characterized by having unlimited liability?

Back

Sole Proprietorship

Front

A corporation that can sell unlimited shares of its stock to the general public, is heavily regulated by the government, and reports its financial information to the public.

Back

Corporation

Front

Which business structure is specifically designed to create a positive impact on society and the environment?

Back

Benefit Corporation (B Corp)

Front

What is the main advantage of a Limited Liability Company (LLC)?

Back

Limited liability

Front

Which type of partnership allows partners to have limited liabilities? Options: General Partnership, Limited Liability Partnership, Sole Proprietorship, C Corporation

Back

Limited Liability Partnership

Front

What is a key characteristic of a General Partnership?

Back

Unlimited liability

Front

Which type of corporation is known for passing income directly to shareholders to avoid double taxation?

Back

S Corporation

Front

What document outlines the terms and conditions of a partnership?

Back

Partnership Agreement

Front

Which business structure is owned and operated by a single individual?

Back

Sole Proprietorship