5-2 Establishing a Business

What is the first step in establishing a sole proprietorship?

• File Articles of Incorporation

• Apply for an EIN

• Register with the SEC

• Decide on a business name

Which business structure is described as a hybrid, combining characteristics of a sole proprietorship or partnership while limiting liability?

• Partnership

• Limited Liability Company (LLC)

• Sole Proprietorship

• Corporation

What document must partnerships create and sign to outline the rights and responsibilities of partners?

• Prospectus

• Partnership Agreement

• Bylaws

• Articles of Organization

What is the purpose of a trademark?

• To register a business with the state

• To file taxes

• To protect a business name and distinguish it from others

• To apply for an EIN

Which agency is responsible for regulating publicly traded corporations in the U.S.?

• Federal Trade Commission (FTC)

• Securities and Exchange Commission (SEC)

• U.S. Patent and Trademark Office (USPTO)

• Internal Revenue Service (IRS)

What is an Employer Identification Number (EIN) used for?

• To apply for business licenses and permits

• To register a trademark

• To create a partnership agreement

• To file Articles of Incorporation

What must corporations file to legally establish themselves as a recognized entity under state law?

• Partnership Agreement

• Bylaws

• Articles of Incorporation

• Articles of Organization

What is a DBA in the context of business registration?

• Direct Business Agreement

• Doing Business As

• Designated Business Area

• Department of Business Administration

What is the main advantage of choosing a corporation as a business structure?

• Limited liability

• Simplified tax filing

• Unlimited liability

• No need for registration

What is the purpose of a prospectus in the context of publicly traded corporations?

• To provide details about the investment and financial information

• To apply for an EIN

• To outline the corporation's bylaws

• To register a business name