ENT Chapter 9
"ADA" stands for..
Americans with Disabilities Act
--- ---- an organizational form that treats the firm as a unique responsible for its own taxes. There are no limitations to shareholder participation and the "owners" are protected beyond their equity investment.
C Corporation
--- corporation has Limited liability and Double taxation
C Corporation
No limitations to the number of shareholders that an organization can obtain, Typically, a larger business, and Owners have to pay taxes on their personal tax returns for the income distributed as dividends
C Corporation
Organized under laws of a state Structure C Corporation S Corporation
Corporation
---- ---- - ---- - is one means to limit liability concerns of the new venture
Effective Application of Insurance
---- ---- form of business involves two or more individuals sharing unlimited liability in a business venture.
General Partnership
Two or more individuals (or entities) Unlimited liability Single taxation
General Partnership
Organized under laws of a state Structure Members not shareholders Limited liability Pass through taxation
Limited Liability Company (LLC)
---- --- is a relatively new business form, exposes all shareholders only to the amount of their investment, Allows to have more investors, and allows other corporations to hold stock in the company
Limited Liability Corporation (LLC)
One or more general partners One or more limited partners Pass through taxation
Limited Partnership
---- a category of business formation that includes both general and limited types
Partnership
-- ---- an organizational form that treats the firm as an entity separate from the individuals.
S Corporation
--- Corporation has Limited liability and Single taxation. Also has Limited shareholders and activities.
S Corporation
Typically, a small new businesses, Limited liability for owners of the corporation, and Limitation to the number of shareholders, currently limit is set at 100 shareholders.
S Corporation
One individual Unlimited liability Single taxation
Sole Proprietorship
is the simplest form of business to establish because the persons who owns it and the business itself are treated as the same entity.
Sole proprietorship
3 basic types of legal business organization
Sole proprietorship Partnership Corporation
3 types of corporations developed by the U.S. legal system
Sub chapter C Sub chapter S LLC
---- ---- --- They are an effective means to handle the basics of partnership, and their provisions do not cover issues like noncompete agreements
Uniform Partnership Act
--- --- --- individuals outside the small business that advise the firm; formed at the discretion of the founders regardless of the legal form chosen.
board of advisors
two related entities that can help the new-business owner foresee potential legal liabilities.
board of advisors & directors
--- --- --- composed of individuals who have a fiduciary responsibility to the shareholders of the organization.
board of directors
---- insurance covers the business in case its employees cause any damage in the performance of their work.
bonding insurance
----- an agreement between two parties to perform certain activities for some consideration.
contract
---- ownership of creative materials the copyright holder has generated, such as books, magazines, advertising copy, music, artwork, or any other creative product, whether published or unpublished.
copyright
A board of ----- is required of corporations, but a board of ----- is optional regardless of the legal form.
directors, advisors
--- --- a corporation pays a Tax on its profits; then those after tax profits are paid as dividends to the owners, who then have to pay personal income taxes on the dividend income.
double taxation
---- are distributions of funds from the business
draws
the more extensive the insurance coverage obtained, the ---- the cost.
higher
--- insurance helps to protect it against lawsuit judgements. Covers the business for accidents. Expensive.
liability insurance
At minimum, most businesses must acquire a ----- to do business in the county or city in which they will be operating.
license
---- a claim of intellectual property that covers a specific innovation
patent
Two primary Issues of Entity Selection
personal liability, taxation
---- insurance covers the building, fixtures, and inventory
property insurance
---- claim of intellectual property that is associated with a specific business. This may be the name of the firm, a symbol representing the firm, or its products.
trademark
----- ---- insurance covers liability for workers who are injured on the job.
workers compensation insurance
