Double taxation means

Which of the following is an advantage of a partnership?

Alani and Jeremy have considered creating their own company but are concerned about the possibility of losing all of their personal assets if the business fails. One way for Alani and Jeremy to avoid this risk would be to organize their firm as a

A(n) ________ occurs when one company buys the property and obligations of another company.

Your three friends from Wyoming inherited an old dude ranch. They now plan to turn it into a pasture for retired racehorses. Serenity Stables wants to open its doors by spring of 2020. After going to several small business seminars, your friends are certain they need limited liability. The high-risk, labor-intensive business will require a sizeable investment including an air-conditioned barn, several fenced-in pastures, and loads of animal feed. You explain to them that LLC ownership requires owners to pay self-employment taxes on the entire amount of earnings. You are fairly certain this is one tax liability your friends would like to avoid. You instead recommend

Double taxation is experienced by corporations that pay dividends. Which of the following scenarios is an accurate example of double taxation?

A ________ is the share of profits or percentage of sales a franchisee pays to a franchisor.

Kiersten and her four siblings are starting their own home design business. One of their primary goals is keeping the loving relationship they currently enjoy, so they are following the Model Business Corporation Act recommendations as they write their partnership agreement. Which of the following is an accurate recommendation of the Act?

The purpose of a farm cooperative is to

An evaluation of franchising would conclude that this type of arrangement

A conglomerate merger will

Lorenzo and Lila own all of the Double L Corporation's stock. The stock of this corporation is not sold to the general public. Lorenzo and Lila own a(n)

Yoshi operates a shoe store as a sole proprietorship. However, he is in poor health and may be unable to continue running the business. If Yoshi becomes incapacitated, his business

The form of business ownership best suited to raising large amounts of money for expansion is the

Carter is a stockholder in ExtremeTrax, Inc., a C corporation that designs and manufactures amusement park roller coasters. The company recently lost a major court decision and is being forced into bankruptcy. In fact, the damages being awarded are so large that, even if all company assets are sold and the proceeds are used to pay its debts, ExtremeTrax is likely to still owe money to its creditors. If ExtremeTrax goes bankrupt, Carter and the other stockholders will

In a partnership, a(n) ________ partner (owner) actively manages the company and has unlimited liability for claims against the firm.

The ________ is usually the easiest form of business to start and end.

The organizational structure of a corporation permits

A ________ is two firms combining to form one company.

The limited liability provided to limited partners means that they are not responsible for the debts of the business beyond