ARE 5.0 Practice Management

ARE 5.0 Practice Management Sole Proprietorship - ANSWER-The business is owned by an individual General Partnership - ANSWER-Two or more people (general partners) share in the management, profits and risk of the business Limited Partnership - ANSWER-Has at least one general partner (invests in the business, manages it and are financially responsible for it) and at least one limited partner (investor who receives a portion of the profits but has no say in the management of the company) C Corporation - ANSWER-An association of individuals (stockholders, directors and officers) that exists as a legal entity apart from its members Stockholders - ANSWER-Owners of the corporation in proportion to the number of shares they own Directors - ANSWER-Have the fiduciary duty to act in the best interest of the stockholders and are responsible for broad policy decisions Officers - ANSWER-Carry out the day-to-day management of the corporation S Corporation - ANSWER-A corporation that chooses to allocate it's income and losses directly to shareholders in proportion to their holdings. Limited to small business corporations with less than 100 shareholders. Professional Corporation - ANSWER-Similar to other corporations except that liability for malpractice is limited to the person responsible for the act. Limited Liability Company (LLC) - ANSWER-Business structure that combines the advantages of a partnership or sole proprietorship with the limited liability of a corporation. (Aka LLP Limited Liability Partnership)