A bakery files with the state, issues shares of stock to its owners, and becomes a legal entity separate from them. Which form of ownership did it create?

A startup corporation sells 20,000 units of ownership to investors. What are those units called?

Horizon Bikes Inc. earns a profit and pays part of it to people who own its shares. What is that payment called?

A corporation signs a lease in its own name instead of the owner's name. What idea explains this?

A small manufacturer wants the company to keep operating even if an investor sells her shares or dies. Which feature of a corporation makes this possible?

After Apex Robotics incorporates, its founder buys 500 units of its stock. What is the founder called in that role?

Use the hierarchy chart. Shareholders vote each year to fill the blank middle level. What belongs there?

In a corporation, who hires the CEO and CFO?

Use the chart. The blank top level owns the corporation and votes for the board. What belongs in the blank?

In a corporation, what is the main job of the board of directors?

Use the hierarchy chart. The board of directors hires the blank bottom level to run the business. What belongs there?

Use the chart. Which group belongs in the blank box, directly below shareholders and directly above the CEO and CFO?

Ridgeline Tools Inc. pays corporate income tax on its profit, then shareholders pay personal tax on dividends. What is this pattern called?

A C corporation earns $90,000 in taxable profit and pays the 21% federal corporate income tax. Ignoring state taxes, how much profit is left after that tax?

A small corporation files an election with the IRS so its profit passes through to its shareholders' personal returns instead of being taxed at the company. What is it called?

Clearwater Apps Inc. earns $300,000, pays 21% corporate tax, and pays out all that is left as dividends. Shareholders pay 15% tax on the dividends. How much do they keep?

Why can a corporation usually raise large amounts of money more easily than a sole proprietorship?

Three designers own a firm whose owners are members, rules are in an operating agreement, and profit passes through to the owners' tax returns. Which form is it?

A delivery LLC cannot pay a $20,000 supplier bill, and none of its members signed a personal guarantee. What are the members normally at risk of losing?

A shop owner wants her personal savings protected if the business is sued, and she wants profit taxed only once, on her own return. Which form best matches those goals?

Maya and Leo form an LLC. What document usually sets how the members share profits and make decisions?

In most states, owners form an LLC by filing which document with the state?

A catering firm is taxed only through its owners' personal returns and gives those owners limited liability. Which phrase best describes its tax treatment?

A bank requires the owner of a small corporation to personally guarantee a $75,000 loan. If the corporation fails, may the bank pursue the owner's personal assets?

An LLC member personally crashes the company van while making deliveries and injures someone. Does limited liability protect the member from their own wrongdoing?

A shareholder runs her corporation's money through her personal bank account and keeps no corporate records. Can a court let the corporation's creditors reach her personal assets?

A corporation owes a supplier $12,000 on a contract signed only by the corporation. The shareholder did not guarantee or co-sign it. Are the shareholder's personal savings normally protected?

Use the compare table. Which blank column names the form with owners called shareholders and stock as ownership units?

Use the compare table. Both columns give limited liability, but the blank column lists members and pass-through taxation. Which form is blank?

Use the compare table. Which blank column shows the form created by filing articles of incorporation and governed by a board?