BUSI formation: classic cruisers Flashcards

Questions and Answers

What is S.C.O.R.E?

Service Corps of Retired Executives

What are the three major forms of business ownership?

Sole proprietorship, partnership, and corporation

What does limited liability mean in the context of an LLC?

It means that I could be liable up to the value of my business assets, but my personal assets would not be considered

If you want personal liability protection and less complicated taxes, which business structure should you choose?

LLC Signup and view all the answers

Which ownership options have limited liability features?

Conventional corporation, S corp, and LLC Signup and view all the answers

If you select a corporation, which goals will you have met?

Ability to bring new owners into the business if needed, protection against personal liability, ability to have employees Signup and view all the answers

If you select a partnership, which goals will you have met?

Ability to bring new owners into the business if needed, easier income tax calculations, minimal ongoing paperwork, ability to have employees Signup and view all the answers

If you select a sole proprietorship, which goals will you have met?

Easy to setup and start, easier income tax calculations, minimal ongoing paperwork, ability to have employees Signup and view all the answers

Which form of ownership is the best?

There is no single form of ownership that is ideal for all business owners Signup and view all the answers

Study Notes

S.C.O.R.E

Stands for Service Corps of Retired Executives, which provides mentorship and guidance for new business owners.

Forms of Business Ownership

The three primary forms of business ownership are:
- Sole Proprietorship
- Partnership
- Corporation

Limited Liability in LLCs

Limited liability means personal assets are protected from business debts; liability is restricted to business assets.

Choosing LLC for Protection

An LLC (Limited Liability Company) is ideal for:
- Personal liability protection
- Fewer owners
- Simplified taxation and management

Ownership Options with Limited Liability

Ownership structures that provide limited liability include:
- Conventional Corporation
- S Corporation
- Limited Liability Company (LLC)

Goals Achieved with a Corporation

Opting for a corporation allows for:
- Introducing new owners when needed
- Protection against personal liability
- Option to hire employees

Goals Achieved with a Partnership

Selecting a partnership meets goals such as:
- Incorporating new owners easily
- Simplified income tax processing
- Minimal ongoing paperwork
- Hiring employees

Goals Achieved with a Sole Proprietorship

Choosing a sole proprietorship fulfills the following goals:
- Quick and straightforward setup
- Simplified income tax processing
- Minimal ongoing paperwork
- Ability to hire employees

Best Form of Ownership

No single ownership structure is universally ideal; suitability varies for different business needs and owners.

Description

Test your knowledge with these flashcards on business ownership and the S.C.O.R.E system. This quiz encompasses essential concepts such as forms of business ownership and the implications of limited liability. Perfect for anyone looking to brush up on their business fundamentals.