What does legal entity mean?
A business recognized by law as seperate from it’s owners
What is a shareholder?
A owner of shares in a coorperation
What type of business typically have the greatest access to capital
corperation
Which concept focuses on risk to the owner’s personal finances?
Liability
Business characteristic that allows a company to continue operating even if the owner leaves or dies
Perpetual existence
Unlimited liability means
Owners are personally responsible for business debts
What is a member of an LLC?
An owner of the LLC
Limited liability protects an owner from what?
Losing personal assets in business debts.
Situation that best describes double taxation
profits taxed at the business level and again at the owner level
Liability
Legal responsibility for debts and obligations
Personal asset
Owner’s personal car or home
Which role is responsible for day to day operations in a coorperation
Management
Capital refers to
Money or assets used to start or grow a business
Pass through taxation
Profits that are taxed only at the owner’s personal level
Why is ease of function important in choosing a business structure
It affects how quickly and cheaply a business can start.
Characteristic defined as legal separation from a business and it’s owner
Limited liability
Shareholders
Own shares of a coorperation
Major advantage of coorperation
Limited liability for owners
Why do some businesses choose S-Corperation status
To avoid double taxation
General partnership, each partner is responsible for
all business debts and actions of the other partner
Which ownership allows profits to only be taxed once at the owner level
Sole Proprietorship
What is the primary role of a limited partner
Providing capital with limited liability
Which characteristic seperates corperations from partnerships?
Legal Entity status
What type of corporation experiences double taxation
C-Corperation
