Ch9 Business Types and Laws

A company’s financial debt or obligations that arise during the course of its business operations.

• Unlimited Liability

• Liability

• Limited Liability

• LLC

A person’s financial liability is limited to a fixed sum, most commonly the value of an investment in a company.

• Unlimited Liability

• Liability

• Limited Liability

• LLC

A corporate structure where members of the company cannot be held personally liable for the company’s debts or liabilities.

• Unlimited Liability

• Liability

• Limited Liability

• LLC

Being personally liable for all business debts if the business can’t pay liabilities.

• Unlimited Liability

• Liability

• Limited Liability

• LLC

The simplest form of business ownership where a person owns a business and is personally responsible for its debts.

• Sole Proprietorship

• Corporation

• S-Corp

• LLC

A legal entity that is separate from its owners.

• Sole Proprietorship

• Corporation

• S-Corp

• LLC

A form of corporation that meets certain requirements that allow income to pass directly to shareholders to avoid double taxation.

• Sole Proprietorship

• Corporation

• S-Corp

• LLC

All of the following describe partnerships except:

• Sharing Profits and Losses

• Unlimited Liability

• Risk Sharing

• Separate Legal Entity from Owners

Joe and Bradley are interested in starting up a corporation. If they form a corporation, they would be considered __________________ .

• Shareholders

• Liability Members

• Partners

• Executives

Corporations are subject to double taxation.

• True

• False