forms of business organization offers liability protection to some of its owners but not to all of its owners?
general partnership
? ny one of the partners can be held solely liable for all of the partnership's debt. advantage of being a limited partner?
Which of the following provides the most liability protection to its owners?
A corporation, sometimes called a C corp, is a legal entity that's separate from its owners. Corporations can make a profit, be taxed, and can be held legally liable.
Corporations
offer the strongest protection to its owners from personal liability, but the cost to form a corporation is higher than other structures.
Which of the following applies to general partnership?
Which one of the following applies to a general partnership?
The firm's operations must be controlled by a single partner
. … Each partner's liability for the firm's debts is limited to each partner's investment in the firm. The profits of a general partnership are taxed the same as those of a corporation.
What is an LLC quizlet?
Limited Liability Company (LLC)
A hybrid form of business
, which is taxed like a partnership while offering owners the limited liability of a corporation. AN LLC is composed of one or more what, who must file articles of organization with the appropriate state authority. members.
Which one of the following actions best matches the primary goal of financial management?
| Question Answer | The primary goal of financial management is to maximize the: market value of the existing stock. | Which one of the following actions best matches the primary goal of financial management? increasing the market value of the equity by improving the efficiency of operations |
|---|
What are the 4 types of business?
There are 4 main types of business organization:
sole proprietorship, partnership, corporation, and Limited Liability Company, or LLC
.
What business type has the most liability?
Sole Proprietorship
: Sole proprietorships are simplest to form, and if you don't register your business as another entity, you'll automatically be considered a sole proprietorship. Owned by one individual, this structure comes with the greatest personal liability.
What are the three key elements of a general partnership?
equal ownership in the business, sharing its profits and losses, and the right to participate in managing the business
.
What is a general partnership example?
Example of a General Partnership
For example, let's say
that Fred and Melissa decide to open a baking store
. … By opening a store together, Fred and Melissa are both general partners in the business, F&M Bakery. It is important to note that each general partner must be involved in the business.
What are the main features of a partnership?
- Two or More Persons: …
- Agreement: …
- Lawful Business: …
- Sharing of Profits: …
- Mutual Agency (i.e., Principal Agent Relationship): …
- No Separate Legal Existence: …
- Unlimited Liability:
What must be filed to form an LLC quizlet?
To form an LLC,
articles of organization
, along with an initial report, must be filed with the secretary of state. NO parish filing is required.
What are the disadvantages of an LLC?
- Cost: An LLC usually costs more to form and maintain than a sole proprietorship or general partnership. States charge an initial formation fee. …
- Transferable ownership. Ownership in an LLC is often harder to transfer than with a corporation.
What are two key features of an LLC?
- It requires the filing of documents with the Secretary of State to be authorized.
- It may have one or more owners called members.
- It can be member-managed, or manager-managed.
- All members have limited liability.
What is the primary goal of financial management?
The goal of financial management is
to maximize shareholder wealth
. For public companies this is the stock price, and for private companies this is the market value of the owners' equity.
What is the primary goal of financial management for a sole proprietorship?
Maximize the market value of the equity O Maximize net income
given the current resources of the firm O Minimize the tax impact on the proprietor O Decrease long-term debt to reduce the risk to the owner O Minimize the reliance on fixed costs.
Which one of the following best describes the primary intent of the Sarbanes Oxley Act of 2002?
Which one of the following best describes the primary intent of the Sarbanes-Oxley Act of 2002?
Increase protection against corporate fraud
. The Sarbanes-Oxley Act of 2002 has: made officers of publicly traded firms personally responsible for the firm's financial statements.
