Accounting and Finance Foundations

Unit 4

Accounting and Finance Foundations Unit 4: Ownership Structures 281

Ownership Structures

Chapter 11

Student Assignment

Ownership Structures—Assignment 1Lesson 11.2

1. What are some advantages of a sole proprietorship?


2. What are the disadvantages of a sole proprietorship?


3. What is the difference between a sole proprietorship and a partnership?


4. If a partner makes a bad business decision, what is the responsibility of the other partners?


5. What are the disadvantages of a corporation?


6. How many people must be involved in a partnership? Is there a limit on the number?


7. What happens when a partner leaves the business or dies?


8. Define unlimited liability. What does it mean to the owners?


9. What are shares of ownership in a corporation called?


10. What is the major advantage of a corporation? Explain your answer.


11. Define a non-profit organization.


12. Explain how a cooperative works.


13. What are some advantages of a cooperative?


14. What is e-commerce, and why are so many businesses becoming involved?


15. What is WebTrust?


16. How are limited partnerships similar to a regular partnership?


17. Explain the differences between limited and general partners.


18. What steps are necessary in forming an LLP?


19. What is the main purpose of an LLP?


20. What are the main differences in an S corporation and a standard corporation?


21. What are the advantages of an LLC compared to other forms of business?