Business Entities (Intro)

The video tutorial explores the concept of business entities, their formation, and their role in society. It categorizes businesses as privately held or publicly owned, and discusses characteristics like creation, maintenance, and governance. The tutorial covers continuity, ownership, control, liability, compensation, and taxation. It also examines different types of business entities, including sole proprietorships, partnerships, and corporations, and their tax implications.

What is a key characteristic of a business entity?

• It is recognized by state law.

• It is always publicly traded.

• It is owned by the government.

• It does not require any maintenance.

What does corporate governance primarily focus on?

• External market strategies

• Internal procedures of a business entity

• Employee satisfaction

• Government regulations

How is control typically defined in a business entity?

• By the number of employees

• By the location of the business

• By the amount of profit

• By the management separate from ownership

What is a common form of business entity?

• Government agency

• Sole proprietorship

• Educational institution

• Non-profit organization

Which tax is applicable to business entities and their owners?

• Environmental tax

• Luxury tax

• Sales and use tax

• Property tax