Which of the following forms of ownership provides the least protection to the owners?
Sole Proprietor
What are the 4 types of business organizations?
Typically, there are four main types of businesses: Sole ProprietorshipsSole ProprietorshipA sole proprietorship (also known as individual entrepreneurship, sole trader, or proprietorship) is a type of an unincorporated entity that is owned only, Partnerships, Limited Liability Companies (LLC)Limited Liability Company …
Which form of business is the easiest to start?
Sole proprietorships
What is an illegal business?
An unlawful business practice is a practice that is conducted in a business setting that is against the law, also known as illegal business practices. Breach of a business contract; Bribery; Unfair competition; Financial fraud; and/or.
What are the legal forms of business structure?
The most common forms of business are the sole proprietorship, partnership, corporation, and S corporation. A Limited Liability Company (LLC) is a business structure allowed by state statute. Legal and tax considerations enter into selecting a business structure.
What is the best legal structure for a small business?
Corporations offer the strongest protection to its owners from personal liability, but the cost to form a corporation is higher than other structures. Corporations also require more extensive record-keeping, operational processes, and reporting.
What is the best organization for Annabeth’s new company?
What is the best business organization for Annabeth’s new company? a corporation, because she will need financing to get started. a sole proprietorship, because the business is small and simple to operate. a partnership, because she lacks the skills to make machine parts.
What is the most significant challenge Annabeth faces in her business?
What is the most significant challenge Annabeth faces in her business model? 1.) Annabeth does not have the skills to make machine parts.
Which type of business is best for Juanita to start quizlet?
Juanita has always wanted to start her own bakery. However, she needs funds to do so and hasn’t established a long credit history because she is only 22 years old.
What are some disadvantages of an LLC quizlet?
- initial cost (cost thousands of dollars and require expensive lawyers and accountants)
- extensive paperwork.
- double taxation (corporation pays tax on its income before it can distribute any, as dividends, to stockholders.
- two tax returns.
- size.
- difficulty of termination.
What are the disadvantages of having an LLC?
Disadvantages
- Profits subject to social security and medicare taxes. In some circumstances, owners of an LLC may end up paying more taxes than owners of a corporation.
- Owners must immediately recognize profits.
- Fewer fringe benefits.
Which business form is best suited to raising large amounts of capital?
corporation
WHO IS Limited Liability an advantage to?
Advantages of LLC: Members have flexibility in structuring the company management. Does not require as much annual paperwork or have as many formalities as corporations. Owners are not personally responsible for business debts and liabilities.
Does limited liability benefit all stakeholders?
One of the greatest benefits of structuring your business as a limited liability company is that it limits the liability of all shareholders. Your business becomes a separate legal person, the only one responsible its own debts and liabilities.
Does limited liability make it easier for companies to attract new shareholders?
Answer. Limited liability is immaterial to attracting new shareholders. It can always require that you sign a personal guarantee, regardless of the company’s limited liability status.
Why do companies have limited liabilities?
Limited liability is a legal structure of organizations that limits the extent of an economic loss to assets invested in the organization and that keeps the personal assets of investors and owners off-limits.
Which form of businesses faces the most agency problems?
Answer and Explanation: The answer is D) Corporation . The more removed the owner is from the manager, the higher the agency problems. Corporations are made up of an…
Which one of the following is a capital budgeting decision?
Which one of the following is a capital budgeting decision? Determining how much debt should be borrowed from a particular lender.
Why should financial managers strive to maximize?
Why should financial managers strive to maximize the current value per share of the existing stock? Doing so guarantees the company will grow in size at the maximum possible rate. Because this will increase the current dividends per share. Because managers often receive shares of stock as part of their compensation.