1.3 Business Accounts

Question 1

Sole Proprietorship

Answer 1

Simplest Structure
No differentiation between owner and business
Full liability - can be sued for anything

Question 2

General partnership

Answer 2

Flow-through income/loss
consider collective objectives

Question 3

Limited partnership

Answer 3

general partner has management and liability
Limited partners only provide capital

Question 4

LLC

Answer 4

-Limited liability for members (can only be sued to extent to business assets)

-consider collective suitability

-no limit on number of members

Question 5

S Corp

Answer 5

Flow-through income
maximum of 100 shareholders, no nonresidents

Question 6

C Corp

Answer 6

separate entity from owner
(apple, amazon, tesla) / shareholders

owners not liable