Types of Business Flashcard

Front

What is a sole proprietorship?

Back

A sole proprietorship is a type of business structure where a single individual owns and operates the business.

Front

Which type of business has unlimited liability for its owner?

Back

Sole proprietorship

Front

What is a partnership?

Back

A partnership is a business structure where two or more individuals or entities come together to carry out a business venture and share the profits and losses.

Front

In a limited liability company (LLC), who has limited liability?

Back

Owners or members

Front

What is a C-Corp?

Back

A C-Corp is a type of legal structure for a business entity that offers limited liability protection to its shareholders and allows for unlimited growth potential through the issuance of stock.

Front

Which type of business is formed for charitable, educational, or religious purposes?

Back

Non-profit organization

Front

What are the advantages of a sole proprietorship? Options: Complete control and decision-making power, simplified tax filing, and minimal legal requirements.

Back

Complete control and decision-making power, simplified tax filing, and minimal legal requirements.

Front

What are the disadvantages of a partnership?

Back

Shared liability, potential conflicts, limited growth potential

Front

What are the characteristics of a limited liability company (LLC)?

Back

A limited liability company (LLC) combines pass-through taxation with limited liability and offers flexibility in management.

Front

What are the tax benefits of a non-profit organization?

Back

Exemption from federal income tax, exemption from state and local sales tax, and the ability to receive tax-deductible donations.