Module 1 Lesson 17: Sole Proprietorship, Partnership, and Corporation -Advantages and Disadvantages

A cost, or disadvantage, of a(n) ____________ is double taxation of the owners.

C corporation

Is an LLC required to have annual meetings?

No

An LLC cannot issue stock.

True

A(n) _________ is an organization owned and operated by designated members using its services.

cooperative

S corporations must first register as a C corporation. In some instances, ________________ are also designated as C corporations.

limited liability companies

Taxation or partnerships, _____________, and _____________ "passes through" to the owners, meaning that the business itself is not taxed, but, rather, the partners report their shares of the profits or losses on their personal tax returns.

limited liability companies, S corporations

A(n)___________ is a business owned jointly by two or more people.

partnership

Joint ventures are similar to __________________, except they usually exist only for a limited time period or to complete a specific project.

partnerships

According to the IRS, which is not one of the four characteristics of a C corporation?

profits taxed only on owner's return

Most businesses in the United States are organized as ___________.

sole proprietorships