Corporation quiz

What is a corporation ?

• A company or group of people that act as one single person

• A business where 2 separate companies work together to start another one off

• An unincorporated business owned by one person

• A business owned by 2 or more individuals

What is a corporate charter ?

• A document used by LLC and corporations that outlines financial and functional decisions

• An application filed for an employer identification number

• A written document filed by a corporation to a US State

• A nondisclosure agreement

What is one advantage of owning a corporation?

• Income can be taxed twice

• Shareholders are liable to any judgments against a corporation

• Corporations cant raise funds by selling shares

• Shareholders risk equity in a corporation

What are the disadvantages of owning a corporation?

• Double taxation

• Independent management

• Unlimited life

• Excessive tax filings

what are the advantages of owning a corporation?

• independently liable

• no income tax

• limited liability

• pass through

What is one disadvantage of owning a corporation?

• Limited of one class of stock

• Pass through

• Limited liablity

• No limit to life

What is an example of a corporation?

• Wendys

• Apple and Mastercard

• Bank of America

• Salvation Army

what is an example of a non-corporation?

• UPS

• Ikea

• Yahoo

• Google