Chap 2

Question 1

proprietorship

Answer 1

A simple form of business owned by one person

Question 2

C corporation

Answer 2

traditional for-profit corporation.

Question 3

S corporation

Answer 3

A for-profit corporation with a limited number of shareholders that, after filing an application with the Internal Revenue Service, is taxed as a proprietorship or partnership.

Question 4

Form 990

Answer 4

A form filed by not-forprofit organizations with the Internal Revenue Service that reports on an organization’s governance and charitable activities.

Question 5

Schedule H

Answer 5

An attachment to Form 990 filed by not-forprofit hospitals with the Internal Revenue Service that provides additional information on the hospital’s community benefit activities.

Question 6

benefit corporation (B corporation)

Answer 6

A type of for-profit corporation that allows managers to consider social and environmental goals ahead of shareholder wealth maximization