FINC 3333 Exam 1

a business where the owner is the business

• Sole proprietorship

• Corporation

• Partnership

can lose not only your business but personal assets, no limit on how liable you are if something goes wrong

• liability

• unlimited liability

• limited liability

multi owner proprietorship

• corporation

• sole proprietorship

• partnership

everyone has unlimited liability

• partnership

• general partnership

• limited partnership

must have at least one general partner with unlimited liability; others may be limited (silent) with limited liability

• limited partnership

• partnership

• general partnership

legal entity separate from its owners

• sole proprietorship

• partnership

• corporation

how do you have ownership in a corporation

• become a manager

• buy bonds

• buy stocks

1. Centralized management

2. Going Concern

3. Free transfer of ownership

4. Limited liability for all

• basic characteristics in a corporation

• basic characteristics in a partnership

• basic characteristics of a sole proprietorship

In a corporation you get taxed at the government level and a personal level.

• True

• False

Where are the two places money can go from EAT?

• retained earnings & taxes

• accounts payable & taxes

• retained earnings & dividends

• dividends & accounts payable