Business Structures Flashcard

Front

What is the main characteristic of a sole proprietorship?

Back

One owner

Front

Which is an advantage of a sole proprietorship? Options: Limited liability, Complete control over business decisions, Easier to raise capital, Shared responsibility

Back

Complete control over business decisions

Front

A common example of a sole proprietorship would be:

Back

A local food truck owned by one person

Front

Which is a disadvantage of a sole proprietorship?

Back

Unlimited personal liability

Front

In a general partnership, partners: Share profits and losses equally unless otherwise agreed

Back

Share profits and losses equally unless otherwise agreed

Front

A limited partnership:

Back

Includes at least one general partner and one limited partner

Front

Which company is a well-known corporation?

Back

Apple Inc.

Front

A key advantage of a corporation is: Simple tax structure, Limited liability protection, Easy formation process, Single owner requirement

Back

Limited liability protection

Front

What's a disadvantage of a partnership?

Back

Partners may disagree on decisions

Front

Which business structure requires the most paperwork and formalities? Options: Sole proprietorship, Partnership, Corporation, None of the above

Back

Corporation