Structuring and Forming a new business

An owner of a sole Proprietorship is personality liable for all assets

• True

• False

A sole proprietorship has to share their profits with a partner

• True

• False

Having full control of a business is a....

• Advantage

• Disadvantage

• Both

Unlimited liability means?

• The owner is personally liable to cover business debts and any costs the business can not cover

• The owner(s) do not have to cover all business costs personally in the case of them being sued or going into debt

• A corporation is not responsible for taking care of lawsuits

• A sole Proprietorship will have enough money and coverage to pay any and all debts

What is capital?

• money

• the owner

• being responsible for something

What is liability?

• money

• the owner

• being responsible for something

We discussed _____ forms of ownership for starting a new business.

• 1

• 2

• 3

• 4

Business ownership in which 2 or more people share assets, liabilities, and profit

• Sole Proprietor

• Partnership

• Corporation

• Franchise

1.1) Shareholders are:

a) A financial manager

b) All people who own shares in a company

c) People who work for the company

• a) A financial manager

• b) All people who own shares in a company

• c) People who work for the company

liability

• the legal obligation to pay debts

• payments to employees other than wages

• the share of earnings that a franchise owner pays toa patent company