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Entrepreneurship > Chapter 7 > Flashcards

Chapter 7 Flashcards

1
Q

Liability

A

Debt of business

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2
Q

Corporation

A

Registered by state and operates apart from its owners

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3
Q

C-corporation

A

The most common corporate form

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4
Q

Personality conflicts

A

Most popular reson for partners to end

Disagreement over authority

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5
Q

Sole proprietorship

A

L A business that is owned and operated by one person

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6
Q

Communities

A

A

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7
Q

Subchapter S corporation

A

Legal form that avoids double taxation

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8
Q

Limited partners

A

The partners liability is limited to their investment

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9
Q

LLC

A

A

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10
Q

Liability protection

A

Insurance

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11
Q

Non-profit

A

A

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12
Q

Whats the primary function of SBA

A

A

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13
Q

Whats SBA

A

A

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14
Q

What distinguishes a small business from a large business

A

A

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15
Q

Limited liability company

A

A hybrid legal form for a business

Corporate shareholders have this

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16
Q

Limited liability company

A

A form of business organization that has limited liability for its members and also has the pass-through tax advantage of partnership

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17
Q

Partnership

A

2+ owners

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18
Q

Unlimited liability

A

Full responsibility for all losses debts and actions

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19
Q

Liability insurance

A

A

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20
Q

General partner

A

A y partner with unlimited liability

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21
Q

Corporate owners aka

A

Shareholders

22
Q

Nonprofit corporation

A

Profit remain with in the corporation

23
Q

Partnership agreement

A

A written document between partners to spell out duties and responsibilities

Not legally required but should have one

24
Q

To decide whether a sole proprietorship is right for you ask yourself

A

How much liability protection you need whether you need investment capital what affects the business will have on your tax status

25
Q

Nonprofit corporations may be set up to benefit

A

Charities. The public. Specific groups.

26
Q

Before deciding on legal form of the business you should consider your

A

Skills
access to capital
expenses

27
Q

Limited liability companies are popular with

A

Law and medical forms

28
Q

The legal form that offers the most protection to the owner is

A

Corporation

29
Q

What does a sole proprietor ecieve out of the business

A

Profit. Curse any losses. The liability of dept

30
Q

Advantages of a sole proprietorship

A

Business pays no tax bc its not seperate from the owners
Easy and inexpensive
Owner gets all the profit and authority
Least regulated ownership

31
Q

Disadvantages of a Sole proprietorship

A

Unlimited liability
Raising capital is more difficult
Harder to get a loan or satisfy investor
If the skills of the owner are limited, the business is limited
Death of owner-end of business
Debts may have to be paid from the owners personal property

32
Q

Family business aka

A

Mom and pop

33
Q

A new business thats a copy of on an existing model

A

A franchise

34
Q

Goodwill means

A

Loyalty to a business

35
Q

What is the best way to find a new business

A

Through networking with people in the community

36
Q

What do you need to ask yourself when buying a business

A

Why is the owner selling

37
Q

Every partnership should have at least one what

A

General partner

38
Q

Can a nonprofit company make profit

A

Yes

39
Q

What kind of ownership is the most popular when theres more than one owner

A

Partnership

40
Q

DBA

A

Doing business as…

When making business name and its not ur own you must file for a dba

41
Q

Limited partner means

A

That partner has no say over the management of the business

42
Q

How does a nonprofit company make profit

A

Not the owners profit
Advancement in science
Education
Arts

43
Q

EIN IS

A

Employees identified number

If you wanna hire people in a sole proprietorship, you have to have that for tax and income perpose

44
Q

General partner meaning

A

The partner in a partnership that has unlimited personal liability and has dull responsibility of the business management

45
Q

How are partners signed parts

A

Amount of contribution at the beginning

45
Q

What happens if limited partners get actively involved in management of the business

A

They lose thier limited liability status

46
Q

Advantages of partnership

A

Inexpensive and easy
They can share ideas
Secure investment capital more easily

47
Q

Disadvantage of partnership

A

Compromises
If one dies or wants out the whole thing ends

Personality conflict:
Disagreement over authority

Technical disadvantage:
Bound by law
Liable for each others actions

48
Q

Considerations before starting a partnership

A

Each others needs

Compromise

49
Q

How to make partnership work

A

Share business responsibility
Put things in writing
Be honest about how the business is doing
Establish an agreement

Entrepreneurship (1 decks)

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