Bus 100 Small Business

Which of the following statements about the taxation of partnerships is true?

Partnerships file tax returns but pass profits and losses on to partners who report them on their tax returns.

_____ are organizations formed by individuals or businesses with similar interests to achieve greater economies of scale and economic power through collective ownership.

Cooperatives

Rebecca Siddoway own and operate Country Candies. Siddoway specializes in making rich, creamy toffees that she packages in attractive gift boxes and sells through the mail. What would be the advantage to Siddoway if she decides to incorporate her business?

Corporations have an enhanced ability to attract financing.

Which of the following is an advantage of sole proprietor ownership?

Freedom from government regulation

To avoid double taxation, a new entrepreneur may elect to organize as a(n):

S corporation

A _____ merger brings together companies in unrelated businesses to reduce risk

conglomerate

A is a business that is established, owned, operated, and often financed by one person

sole proprietorship