Accounting Week 4 P4 Explore

What is one of the first decisions you need to make when starting a business?

• Finding an office space

• Choosing a name

• Deciding on a legal structure

• Hiring employees

What is a key feature of a corporation?

• It does not pay taxes

• It cannot enter into contracts

• It is a separate legal entity

• It is owned by a single person

What happens to a corporation if its owner changes or passes away?

• It must be sold

• It merges with another company

• It dissolves

• It continues to exist

Which type of corporation pays taxes like an LLC?

• Sole proprietorship

• Non-profit

• S-corporation

• C-corporation

Why are non-profits exempt from taxes?

• They are too small to be taxed

• They carry out activities for public benefit

• They do not make any profits

• They are owned by the government