Two architects jointly own a design studio, share its profits, and are both personally responsible for its debts. What form of business is it?

What business form has one owner who makes the decisions and receives the profits?

A company has many owners who hold shares and elect a board of directors. What form is the company?

Why do many new small businesses, like Nia's one-person tutoring service, start as sole proprietorships?

Three siblings run a bakery as a general partnership. One sibling orders $10,000 of new ovens for the bakery without asking the others. Who is generally bound by the order?

In a large corporation, who usually manages day-to-day operations?

Evan runs his bicycle repair shop as a sole proprietorship. Which is an advantage of this form for him?

Before opening their clinic, two veterinarians write down how they will split profits and duties and what happens if one leaves. What is this document called?

A sole proprietor's store owes $40,000 after its business assets are exhausted. What may creditors generally seek next?

A corporation loses a lawsuit for more money than it owns. What is an ordinary shareholder's usual personal liability?

A general partnership cannot pay a supplier. Under unlimited liability, what can the supplier generally do?

Mara owns stock in a large corporation and wants to stop being an owner. What can she usually do?

What is a common drawback of a sole proprietorship when the owner needs money to grow the business?

In a limited partnership, a customer wins a judgment larger than the firm's assets. Who can ordinarily be held personally liable?

Which business form protects its owners' personal assets from business debts and lets profits pass through to the owners' own tax returns?

Lena wants to start a small photography business using her own savings and keep complete control. Which form fits this capital plan?

Two chefs each want to contribute money, equipment, and labor to open a restaurant together. Which form directly fits their plan?

A startup needs $4 million and plans to sell ownership shares to many investors. Which form can do this?

Which is a common disadvantage of organizing a business as a corporation?

A farmer pays a national smoothie brand fees to sell its drinks under its name, using its recipes and rules, at her produce stand. What is this arrangement called?

A law practice needs several owners to contribute funds and professional expertise, but it does not plan to issue stock. Which form best fits?

Investors want ownership shares, limited liability, and a way for the business to raise large amounts of equity capital. Which structure fits?

Priya earns a profit from her one-owner catering business. Where is that business income generally reported for income-tax purposes?

A general partnership earns a profit. How is that profit generally taxed?

A corporation pays tax on its profit, then distributes after-tax profit as dividends that shareholders also pay tax on. What is this called?

The owner of a one-person landscaping business dies and no sale or new organization occurs. What usually happens to the sole proprietorship?

The founder of a corporation dies, but other shareholders remain. What happens to the corporation itself?

Absent an agreement providing otherwise, what can happen when a general partner leaves a partnership?

Which form may face tax at the business level and again when dividends are paid to owners?

A corporation earns $100,000, pays 21% corporate income tax, and pays out the rest as dividends. Shareholders pay 15% tax on dividends. How much do shareholders keep after both taxes?