Forms of Business Organization

The three classic forms

The corporation

Hybrid forms, the LLC and the LLP

How structure shapes finance

Which feature of the corporation follows directly from its legal separateness from owners and managers?

What exactly does double taxation of corporate income mean?

A group of owners wants partnership-style taxation with no personal exposure to business debts. Which form fits their requirements?

Why do most successful large firms operate as corporations rather than proprietorships or partnerships?

In a limited partnership, what distinguishes the limited partners from the general partners?

According to the lesson, why does limited liability tend to lower a firm's cost of equity capital?

What three-letter abbreviation names the hybrid form owned by members with pass-through taxation and limited liability? Write the abbreviation.

What two-word term describes the taxation of corporate earnings once at the firm level and again when paid as dividends? Write the term in lowercase.

What two-word term describes the situation of a sole proprietor whose personal assets are exposed to business debts? Write the term in lowercase.

What term names the transferable unit of ownership in a corporation? Answer with one word, singular.