Chapter 5 self study
a LLC has the choice of taxation and can be taxed as a _____ or a corporation
partnership
A corporation allows people to own ___ and share in the profits of the firm
stock
the number of an S corporation's _____ is limited to no more than 100
stockholders
disadvantage of a corporation?
double taxation and cost of forming a corporation
no stock, limited life span, and fewer incentives are disadvantages of a
LLC
Advantages of Limited Liability Company
Limited liability Choice of taxation Flexible ownership rules Flexible distribution of profits and losses Operating flexibility
a unique government creation that looks like a corporation but is taxed like a sole proprietorship or partnership is a called a _ corporation
S
A unique government creation that looks like a corporation but is taxed like sole proprietorships and partnerships is called a
S corporation
One company's purchase of the property and obligations of another company is an
acquisition
one company's purchase of the property and obligations of another is called
aquistion
a corporation is formally formed with
articles of incorporation and bylaws
a corporation is formally formed with..
articles of incorporation and bylaws
In addition to the articles of incorporation, a corporation has ___ ,which describe how the firm is to be operated from both legal and managerial points of view
bylaws
firms in unrelated industries united to diversify business operations and investments. soft drink company/snack company
conglomerate merger
When producers, consumers, or workers with similar needs pool their resources for mutual gain; they start a
cooperative
The ___ form of business allows people to become owners without having to work at the firm
corporate
the _____ form of business allows people to become owners without having to work at the firm
corporate
A ____ is a state-chartered entity that exists in the eyes of the law and controls risk to the owners of the firm
corporation
a legal entity with authority to act apart from its owners
corporation
the goal of a ____ cooperative was to join together to get better prices for their food products
farm
another kind of cooperative in US is formed to give more economic power as a group. they don't pay the same kind of taxes corporations pay
farm cooperative
a partnership meaning that all partners share in operating the business
general partnership
Drew and Owen are partners. Drew invests money and manages the business, Owen invests money but hes not managing. Drew is a ____ partner and Owen is a ____ partner
general, limited
when a soft drink company and a mineral water company merge and then are able to supply variety of drinking products, they have formed a____ merger
horizontal
A sole proprietorship has a limited life span unless
its sold to someone else or is taken over by heir
LCC's are considered to have operational flexibility because while they must submit articles of organization, they are NOT required to:
keep minutes or hold annual meetings
LLC's have operational flexibility because while they must submit articles of organization, they aren't required to..
keep minutes or hold annual meetings
leaving a _____ means owners can leave an ongoing business for future generations
legacy
A ___ is an attempt by employees, management, or a group of investors to purchase an organization primarily through borrowing
leveraged buyout
The responsibility for a loss only up to the amount is ____ liability
limited
a ____ partnership has partners who do not share in operating the business
limited
if the sole proprietor dies, is incapacitated, or retires, the business no longer exists. this disadvantage is called ____ life spand
limited
the form of business ownership called ___ ___ protects the person's personal assets from the debt of the business
limited liability
when the continued operation of the business is dependent on the life of the business owner, it is referred to as..
limited life span
when there is one or more general partners and one or more limited partners, the firm is a
limited partnership
The ____ limited partnership looks much like a corporation with how it acts and is traded on a stock exchange
master
When two firms join together to form one new company, it is called a
merger
The Limited Lability Partnership ensures that the limited partners' ____ assets are not at risk
personal
individuals who start and manage a business are concerned with risk. they may choose to incorporate to decrease
personal liabilities
When you own a sole proprietorship you and the business are considered one, so you have ___ liability for financial obligations such as debt
unlimited
if your company debts or damages are solely your responsibility you could be experiencing the disadvantage associated with owning a sole proprietorship called..
unlimited liability
A merger that joins two companies involved in different but related levels of an industry is a(n) _ merger
vertical
when two firms operating in different stages of related businesses join, it is called a ____ merger
vertical
