Business Types of Ownership 1-10 vh

_________ ___________ is one of the decisions you will need to make at the beginning of your journey to start a business.

• Legal structure

• Hiring people

• Firing people

• None of these

Most businesses are _________ businesses

• small

• large

• medium

• corporate

_____________ ____________ is a business owned by one person, and the owner has unlimited liability, meaning the owner can lose more than they invested in the business.

• A LLC

• Partnership

• Sole Proprietorship

• B Corporation

A ________________ is a business owned by two or more people.

• Corporation

• Partnership

• LLC

• B Corp

Two types of partnership are: ________ and _____________.

• limited and general

• joint and corporate

• LLC and Joint

• None of these

The differences between the two types of partnerships largely have to do with ______________, that is, the amount of losses that can occur.

• liability

• money

• people

• cost

But for most entrepreneurial startups, with one or more co-founders or partners, a  _________________, or LLC, is a common choice.

• Limited Liability Company

• B Corporation

• C Corporation

• Unlimited

A Limited Liability Company is a hybrid business structure, where it combines the operational characteristics of a ____________ or __________ while limiting the liability of the investors to the amount they invested. The tax liability is passed directly through to each owner, like a partnership, based on the level of ownership each owner has in the company. An LLC can also raise money by selling “units” (not called shares), and owners are called “members”.

• sole proprietorship or partnership

• corporation or partnership

• none of these

• all of these

A ___ ________ can sell unlimited shares to the general public, is heavily regulated by the government, and reports its financial information to the public. Owners’ losses are limited to the amount invested. It also experiences double taxation_,_ which means the company pays income taxes, and then the owners pay taxes on any dividends. Owners are called stockholders_._

• C Corporation

• LLC

• B Corporation

• Partnership

Double taxation - is a con for a ___________

• C Corporation

• LLC

• B Corp

• Partnership