Entrepreneurship Exam 5 Questions and Answers Latest Update 2025 Already Passed

Entrepreneurship Exam 5 Questions and Answers Latest Update 2025 Already Passed 3 basic legal structures: - Answers 1. sole proprietorship 2. partnership 3. corporation sole proprietoship - Answers a business owned by one person who has unlimited liability and unlimited rights to profits Advantages of Sole Proprietorship - Answers - easy to start - doesn't require as much paperwork - fewer regulations - ability to make quick decisions - entitled to all profits Disadvantages of Sole Proprietorship - Answers - difficult to raise money - long hours - personally liable - no encouragement or feedback - taxed personally steps to registering - Answers 1. choose name 2. registration forms 3. name search 4. pay a fee 5. notary partnership - Answers A business with two or more owners that make decisions for the business together and share to profits, losses, assets, and liabilities limited partnership - Answers business partnership owned by a general partner with unlimited liability and one or more limited partners with no official input in daily operations and limited liability corporation - Answers a legal entity composed of stockholders under a common name corporate legal structure offer 3 key advantages: - Answers 1. issue stock to raise money 2. limited personal liability 3. can exist indefinitely C Corporation - Answers most companies sell ownership as shares of stock Subchapter S Corporation - Answers limit of 100 stockholders only taxed once, as the personal income of the owners Professional corporation - Answers for particular professions such as medical practices or accounting firms nonprofit corporation - Answers specific mission to improve society tax-exempt public benefit corporation (B-corporation) - Answers civic or environmental benefit Limited Liability Company - Answers personal assets are protected flexible Series Limited Liability Company - Answers liability protection across multiple series contract - Answers an agreement between two or more parties that is enforceable by law building blocks of business work and payment boilerplate language - Answers a standard format for a specific type of legal agreement a successful contract should achieve the four A's: - Answers 1. Avoid misunderstanding 2. Assure work 3. Assure payment 4. Avoid liability contingencies - Answers a condition that must be met in order for something else to occur letter of agreement - Answers a document that puts an oral understanding in writing, in the form of a business letter signatory - Answers an individual who signs a contract breach of contract - Answers the failure of a signatory to perform a