Jurisprudence IUSD Exam | Questions with 100% Correct Answers | Verified | Latest Update 2024 | 30 Pages

Which practice association is the easiest and least expensive to form and why? - *The Sole Proprietorship* is the simplest form of business organization and, therefore, the least expensive to maintain. There are normally no formalities required to begin What is a Certificate of Assumed Business Name and how does it pertain to a dental practice? - A *Certificate of assumed business Name* is a state form used to identify your business. Does a sole proprietorship limit the owner's personal liability? Why or why not? - No All business property and all personal property are subject to the claims of creditors. In other words, this type of business organization provides no protection to the owner's personal assets. Why is a sole proprietorship at a disadvantage compared to other associations when raising working capital? - The SP's ability to raise working capital is limited to the amount of money that can be obtained through her own asset base and borrowing power. How is a sole proprietorship taxed? - As a sole proprietor you must report all business income or losses on your personal income tax return; the business itself is not taxed separately. (The IRS calls this "pass-through" taxation, because business profits *pass through* the business to be taxed on your personal tax return. Define a partnership - Partnership: An association of two or more persons to carry on, as co-owners, a business for profit. *Note the intent is to make a profit*. What is "joint and several" liability? - An unlimited liability (including personal assets) of each partner for all debts of the business whether in contract or tort