ENT ch 9
what questions should be considered by a new business owner before entering into a leasing contract?
1. what exactly is the new business owner leasing? 2. can the owner renew the lease? 3. who is responsible for improvements? 4. who has responsibility for maintenance and other facility issues? 5. who has to carry the liability insurance and at what level? 6. can your landlord enter your place of business? 7. if there are problems, what are the procedures for addressing and resolving them?
ADA
American with Disabilities Act prohibits discrimination on basis of disability
contract
An agreement between two or more parties to perform certain activities
general partner
An owner (partner) who has unlimited liability and is active in managing the firm.
Sources of info regarding regulatory requirements?
Small Business Assistance Center (ran by Small Business Administration), the state local department of economic development, and the local chamber of commerce
what form of incorporation is required to pay income tax?
Subchapter C Corp
what business forms are required to hold annual board meetings and file reports to local, state, and federal authorities?
Subchapter S Corporation and Subchapter C Corporation
board of advisors
a group formed at the discretion of the founders and composed of founders outside the business who advised the founders
trademark
claim of intellectual property associated with a specific business
patent
claim of intellectual property that covers a specific innovation
what are trademarked by most large companies?
company name, symbols, and tag lines
in new corporations, the shareholders and board of ________ are often the individuals
directors
draws
distribution of funds from the business
for tax purposes, all businesses must have ______
employer identification number
T/F: the greater the insurance coverage obtained by a new business, the lower the cost
false; the cost is greater
what are the typical requirements for a new business to obtain a city or county business license?
fill out a form, pay a set fee (usually $100), and agree to report basic information about the business's performance on a set schedule
What does liability insurance cover?
helps protect against lawsuit judgements
what industries would be highly regulated by the government?
industries involving alcohol, military-related, and medical-related
which type of insurance helps protect a business against lawsuit judgements?
liability insurance
what are the three basic types of legal business organizations?
partnership, sole proprietorship, and corporation
Sole Proprietorship
simplest form of business, person who owns the business and the business itself are treated as the same entity
which type of legal business organization is the simplest form to establish?
sole proprietorship
what business forms do the business debts flow directly to the owners?
sole proprietorship or general partnership
what does bonding insurance do?
the business is covered in case the workers cause any damage in the performance of their work
a _______ is a legal protection of the intellectual property that is associated with a specific business
trademark
Subchapter C Corporation
treats the firm as a unique entity responsible for its own taxes. - no limitations to shareholder participation and the "owners" are protected beyond their equity investment
Subchapter S Corporation
treats the firm as an entity separate from the individuals. - allows owners to treat the income as they would if the firm were a sole proprietorship or a partnership - has limitations in the number and type of shareholders
What does workers compensation cover?
injuries of workers on the job
LLC
limited liability corporation
LLP
limited liability partnership
copyright
the legal means to protect intellectual property
T/F: if a corporation suffers substantial losses, the founder(s) will lose only his/her investment in the business
true
partnership
type of business formed between individuals directly, both general and limited varieties