4.5-4.8 Business Corporations

(a)   liability is a feature of corporate ownership that limits each owner’s financial liability to the amount of money that he or she has paid for the corporation’s stock.

What is unlimited liability?

If a corporation fails or is involved in a lawsuit and loses, creditors have a claim only on the corporation’s assets

• unlimited liability

• limited liability

• frequent liability

• reliable liability

___________ is one of the most effective forms of business ownership for raising capital

• Organization

• Capitalism

• Corporation

• Partnership

The amount of capital can be raised by selling _________________.

• Stocks

• Capital

• Dividends

• Shareholders

IPO

• Initial Public Stock Offering

• Initial Partnership Stock

• Initial Public Offering

• Initial Partnership Organization

Having a successful business even after the original owners have passed away. Example: Sears

• Perpetual Business

• Business Life

• Existing Life

• Perpetual Life

A corporation that is taxed as though it were a partnership. (Corporation’s income is taxed only as the personal income of its stockholders.)

• T Corporation

• S Corporation

• Shareholder Corporation

• S Partnership

LLC Stands for...

(a)  

a corporation organized to provide a social, educational, religious or other service rather than to earn a profit

• Not for Profit

• S Corporation

• Sole Proprietorship

• Partnership