Limited life and unlimited liability
Limited life and limited liability
Unlimited life and unlimited liability
Unlimited life and limited liability
A car manufacturer
A legal firm with four lawyers
A home builder
A dog grooming service
The business closes down.
The business changes names.
The partner takes over the business.
The government takes over the business.
A business in which none of the partners is responsible for the debts or liabilities of the other partners
A business in which one partner acts as the general manager
A business in which the partners share management and liabilities
A business in which at least one partner is not involved in management and is liable only for his or her investment
Someone who needs money and management advice
Someone who wants to share liabilities and debts if the business fails
Someone who needs assistance with the day-to-day management
Someone who needs money but wants to retain control of the business
Potential for conflict between partners
More government oversight
Having complete control over product
Selling a product that consumers know
Being free from all oversight
Decorating your business the way you want
Paying a membership fee
Paying a licensing fee
Working without a salary
A consumer cooperative
A producer cooperative
A service cooperative
A nonprofit organization
The business does not continue if the owner leaves.
There are many regulations on business activities.
There is a ceiling on the number of business expenses.
The business is restricted in size.
The owner has unlimited liability.
The owner keeps all the profits.
The owner has unlimited startup funds.
The owner does not have to obey labor laws.
Limited lifetime liability partnership
Limited liability corporation
An institution that makes laws
A business that licenses the right to sell its products in a particular area
A business operated for the shared benefit of its owners, who are also its customers
A semi-independent business that buys the right to run a franchise
The owner has total responsibility for all business decisions and financial obligations.
There are few government regulations placed on sole proprietorships.
A person who wants to open a sole proprietorship usually has limited funds.
The owner of a sole proprietorship keeps all the profits of the business.
Kitchen appliance maker
Football helmet manufacturer
The part of the corporation owned by a stockholder
The part of the corporate profits paid to a stockholder
The part of the corporation most available to stockholders
The part of the corporate debt owed by the stockholders
Limited life, limited liability
Limited life, greater access to funds
Unlimited life, limited liability
Unlimited liability, greater access to funds
A restaurant that is part of a national chain: McDonald’s; Yum!; Subway
A single gas station named Art's Fuel and Service
A mom-and-pop grocery store
One of a chain of three dry cleaners owned by the same man
The creditors will forgive the debts because they were business related.
He will have to sell his house and use his savings to pay those debts.
He will deduct the debts on his income tax return and receive a big refund.
The bank will give him a business loan so he can pay debts and start over.
To raise money to invest in the business
To involve more people in running the business
To spread liability among a larger group
To gain a more diverse group of owners
The government taxes sole proprietors at higher rates.
The government taxes corporate profits and also shareholder dividends.
The government taxes both partners in a partnership.
Both the U.S. government and foreign governments tax multinational corporations.