Business Chapter 4

limited

The responsibility for a loss only up to the amount invested is ______ liability.

unlimited liability

A key disadvantage of operating a sole proprietorship is:

corporation

A legal entity with authority to act and have liability apart from its owners is aA legal entity with authority to act and have liability apart from its owners is a

+it is taken over by an heir +it is sold to someone else

A sole proprietorship has a limited life span unless:

liability

In a general partnership, all partners share the responsibility for operating the business and assume _____ for the business's debts.

unlimited liability

In a sole proprietorship, any debts or damages incurred by the business are your personal debts and you must pay them. This disadvantage is known as:

+it may only require a simple permit or license to start +only one person is involved in the decision to dissolve the business

It is easy to start and end a sole proprietorship because:

legacy

Leaving a ______ means owners can leave an ongoing business for future generations.

boss

Many people do not like working for someone, so being your own ______ is an advantage of sole proprietorships.

finds it easier to start and end the business

One of the most important advantages of the sole proprietor form of ownership is that a business owner:

+paid sick or vacation leave time +paid health insurance +a pension plan

Select those items considered fringe benefits that people working for a company are likely to receive, but a sole proprietor has to develop on his own:

unlimited liability

The disadvantage of sole proprietorships is that any debts or losses incurred by the business are your debts because you and the business are legally one and you have:

unlimited

The responsibility of the owner of a sole proprietorship for all of the debts of the business is _______ liability.

False

True or false: If you and a friend start a business together, you have started a sole proprietorship.

True

True or false: The main advantage of a sole proprietorship is ease of start up.

True

True or false: The owner of a sole proprietorship is responsible for developing any fringe benefits they have.

Legacy

When a sole proprietor leaves an ongoing business to future generations, it is said that the owner is leaving a______

unlimited

When any debts or damages incurred by the business are your debts or damages it is called ________ liability.

limited life span

When the continued operation of the business is dependent on the life of the business owner, it is referred to as:

limited partnership

When there is one or more general partners and one or more limited partners, the firm is a(n):

Partnership

When two or more people legally agree to become co-owners of a business

Sole proprietorship

Which is the easiest form of business to start up?

Corporation

a legal entity with authority to act and have liability apart from its owners

general, limited, and master limited

The three major types of partnerships are:

Personal

Unlimited liability as it relates to sole proprietorships is the risk of loss of ______ assets beyond the assets of the business.