Business Ownership and Organization Flashcards
1
Q
Most US firms are
A
Proprietorships
2
Q
Partnership
A
A firm owned by multiple people who share the profits earned by the firm and bear unlimited liability for all business debts incurred
3
Q
Sole Proprietorship
A
A firm owned by a single person who receives all the profits earned by the firm and bears unlimited liability for all the firm’s debts.
4
Q
Corporation
A
A legal unit owned by stockholders whose liability is restricted to the value of the stock they own.
5
Q
Tax Structure
A
Proprietorship - Once
Partnership - Once
Corporation - Twice (Corporate Income and Personal Income)
6
Q
Which group of corporate shareholders receives a regular, fixed dividend payment regardless of the corporation’s profits?
A
Owners of Preferred Stock
