Vocab 8 1. Business organization- the ownership structure of a company or firm. 2. Sole partnership- a business that one person owns. 3. Business license- written permission given by the local government that allows a business to open. 4. Zoning laws- law that does not allow people to operate a business in certain areas. 5. Unlimited personal liability- when the owner of a business is responsible for paying all the money the business owns. 6. Liable- having legal responsibility. 7. Limited capital- the limit on the amount of money to grow the business. 8. Fringe benefits- anything extra given to workers in addition to their wages, such as paid vacations, retirement plans, and medical insurance. 9. Partnership- a business that two or more people own.. 10. General partnership- a partnership in which partners share equally in both responsibility and liability. 11. Limited partnership- a partnership in which only one partner is required to have both responsibility and liability. 12. Limited liability partnership- a partnership in which all partners are limited partners. 13. Articles of partnership- a partnership agreement; lists each partner’s rights and responsibilities and how the partners will share profits or losses. 14. Asset- the money and valuables belonging to an individual or business. 15. Business franchise- a business that pays fees to a parent company in return for the right to sell a product or service. 16. Royalty- share of earning given as payment to the owner of a patent or copyright. 17. Corporation- a business that can be made up of many owners; the law allows it to act like a single person. 18. Charter- an official document issued by state governments that gives the right to create a corporation 19. Share- a unit of stock in a company 20. Stock- a certificate that signifies ownership in a corporation. 21. Closely held corporation- a corporation that gives stock to only a few people, often members of the same family. 22. Publicly held corporation- a corporation that sells stock on the open market. 23. Limited liability- when investors can lose only the money they have invested. 24. Bond- a type of loan that investors buys from a company or from the government; the seller promises to pay back the investor’s money plus a profit later. 25. Certificate of incorporation- a license to form a corporation issued by a state governments 26. Dividend- the investors share of company’s profit. 27. Capital gain- financial gain 28. Limited liability corp.- a type of business with limited liability for the owners; it does not pay corporate income tax. 29. Horizontal merger- when a business buys another business that provides the same goods and services. 30. Vertical merger- the combination of businesses…
Limited Liability Corporation and Limited Liability Partnership
University of Phoenix
America has been known for many years as the land of opportunity both for Americans as well as foreigners in regards to starting a business. But, as easy as it has become to start a business, it is also important to understand the different options there is when structuring the business. This…
Limited Liability Companies and S Corporations are viable ways for organizations to compete in today’s economic environment. Each form of business has its own strengths and weaknesses that can be beneficial and detrimental in different settings. Limited Liabilities can be characterized by different tax incentives, ownership, and liabilities. LLC’s are quickly becoming the popular choice of many small businesses in the Unite States. LLCs combine the most favorable attributes of general partnerships…
NOTES FOR PARTNERSHIPS AND CORPORATIONS
1. GENERAL PARTNERSHIPS: IMPLIED
In the Lanz v. Lanz case, the plaintiff was trying to prove that he was a partner in his father’s trucking business. The court said that the plaintiff son would have to prove that there was a relationship between two or more parties carrying on a business together with a view to profit. The court said that there must be a contribution of capital, skill or other resources to a common project, joint management…
ran by one person. Most common form of business.
Partnership Business owned by 2 or more people.
Corporation A business owned by stockholders, but having all rights of an individual.
Sole Proprietorship advantages easy to start, enjoys all profit, business is tax exempt, satisfaction, ease of getting out
Sole Proprietorship disadvantages unlimited liability, difficulty raising capital, limited managerial experience, attracting qualified employees, limited life …
Sole Proprietor (Form 1040 Schedule C or Schedule F), C-Corporation (Form 1120), S-Corporation (Form 1120S), Partnership (Form 1065), Trust (Form 1041), and Non-profit organization (Form 990) You may notice that the limited liability company (LLC) is not listed above. That's because an LLC can be treated (for tax purposes) as a sole proprietor, as a partnership, as a C-corporation, or as an S-corporation. The owners of the limited liability company (LLC) can pick which tax treatment will apply. By…
ability to obtain capital Owner bears unlimited personal liability for the firm
Partnership: It shares the advantages and disadvantages of the sole proprietorship. Ability to pool capital Combining service-oriented expertise and skill. Disadvantage is that each partner bears unlimited personal liability for the activities of the partnership.
Corporation: It is its own legal entity, as if it were a person, corporation can sue and be sued in court. Corporation must pay tax regardless its owner already…
devise strategies for acquiring those funds.
b. The three main forms of business organization are (1) sole proprietorships, (2) partnerships, and (3) corporations. In addition, several hybrid forms are gaining popularity. These hybrid forms are the limited partnership, the limited liability partnership, the professional corporation, and the s corporation. The proprietorship has three important advantages: (1) it is easily and inexpensively formed, (2) it is subject to few government regulations, and…
financial manager of any business firm.
2. Identify the basic forms of business organization used in the United States, and review their respective strengths and weaknesses.
3. Describe the typical organization of the financial function in a large corporation.
4. Explain why maximizing the current value of the firm’s stock price is the appropriate goal for management.
5. Discuss how agency conflicts affect the goal of maximizing stockholder wealth.
6. Explain why ethics is an appropriate topic in the…
all of the laws, rules and regulations that go along with working for a C Corporation. This includes the ins and outs of what is expected as well as any and all advantages and disadvantages of this process. In this memo I will explain all of this as well as the exchange currency risks of a multinational corporation.
1. Multiple owners-this method allows for there to be many owners. For corporations that have hundreds of owners, this method has been shown to be extremely beneficial…