Business Structure

-Two or more owners

-Lower taxes

-Unlimited Liability

• Partnership

• Sole Proprietorship

• Corporation

• All of the above

A _______________ is a business owned jointly by two or more people. 

• Partnership 
• Corporation 
• Limited Liability Corporation (LLC)
• Sole Propirtorship

What type of paperwork is needed for a Partnership?

• Business License

• Partnership Agreement

• Corporate Charter

• Franchise Agreement

Which of the following is a disadvantage of setting up a business as a partnership?

• Shared losses

• Shared workload

• Shared profit

• More ideas generated

list two disadvantages of partnership (REM)

• (I) partners might not all contribute equal

  (ii) partnership has unlimited liability

• (i) cash flow is often a problem

  (ii) there could be a lack of capital and cash flow

• (i) limited amount of capital available

  (ii) ineffective services

When one person has full responsibility and the other is “silent partner” it is a:

• General Partnership (GP)

• Limited Liability Partnership (LLP)

• Limited Partnership (LP)

• it is not a partnership

How many partners are there in a typical partnership?

• 2

• 2-4

• 2-20

• 1

More owners means more disagreements for what type of structure?

• Public Limited

• Partnerships

• Private Limited

• Sole Trader

_______________is a legal term for being held accountable

• Liability

• Assets

• Bankruptcy

• Claim

Disadvantages for this type of business include: owner pays for everything, hard to get money to start from the bank, owner might lack skills & unlimited liability.

• Sole Proprietorship

• Partnership

• Corporation

• Limited liability company