Term
| What Business entity is inexpensive to form and maintain? |
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Definition
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Term
| In a Sole Proprietorship, who has control of the business? |
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Definition
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Term
| In a Sole Proprietorship, who takes full responsibility for profits and losses? |
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Definition
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Term
| In a Sole Proprietorship, why is it difficult to raise capital? |
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Definition
| Because there is no financial protection for the owner, making it a risky investment |
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Term
| In a Sole Proprietorship, What tax forms are used? |
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Definition
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Term
| If you use any name other than your own to form a sole proprietorship, what must you file? |
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Definition
| A ficticious name statement |
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Term
| Who controls the business in a partnership? |
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Definition
| Both partners equally and individually |
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Term
| Who takes on liability for losses in a partnership? |
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Definition
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Term
| What tax forms are used for a partnership? |
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Definition
| 1065 for business and a K-1 for the individual partners |
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Term
| If no written agreement exists, can one partner bind another to a contract without their consent? |
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Definition
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Term
| If no written agreement exists, what happens if a partner leaves or dies? |
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Definition
| The company must dissolve and all the assets be sold |
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Term
| If no written agreement exists, what happens if a partner leaves or dies? |
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Definition
| The company must dissolve and all the assets be sold |
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Term
| Which business entity is formed when an outside investor simply invests money in a partnership? |
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Definition
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Term
| In a limited partnership who has all control and liability? |
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Definition
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Term
| In a limited Partnership who has limited control and liability? |
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Definition
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Term
| Who has control in a Corporation? |
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Definition
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Term
| How do you raise capital in a corporation? |
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Definition
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Term
| What tax form is used for corporations? |
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Definition
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Term
| Who makes general decisions and selects the officers for a corporation? |
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Definition
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Term
| Who makes day to day decisions in a corporation? |
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Definition
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Term
| What is the limited number of US Shareholders a Subchapter S Corporation can have? |
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Definition
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Term
| Do the owners of an S Corp have liability for losses? |
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Definition
| Yes (owners=shareholders) |
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Term
| Who pays the taxes in an S-Corp and what form do they use? |
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Definition
| Shareholders with an 1120 |
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Term
| Who takes the risk in an LLC? |
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Definition
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Term
| What types of business entities can bring in investors? |
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Definition
| Corporations, S Corp LLC Limited Partnership |
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Term
| What types of business entities put the individual at risk? |
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Definition
| Sole Proprietorships, Partnerships |
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Term
| What types of business entities give protection to the owners? |
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Definition
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Term
| Who is a registered agent? |
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Definition
| A Person who files/recieves legal documentation for a company |
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Term
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Definition
| Federal Employer Identification Number |
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Term
| What is a payroll service? |
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Definition
| A service that makes sure payroll deductions are being made before you pay your employees |
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Term
| What is tax jurisdiction? |
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Definition
| Various levels of government with the ability to tax |
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Term
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Definition
| A tax based on how much an employer pays its employees |
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Term
| What business expenses are tax deductable? |
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Definition
| Purchases reasonable and neccessary to run your business |
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Term
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Definition
| Your financial History used to determine credit worthiness |
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Term
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Definition
| Credit Reporting Agencies |
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Term
| What are the three major CRA's? |
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Definition
| Experian, Equifax, and Transunion |
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Term
| What does the FCRA stand for? |
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Definition
| Fair Credit Reporting Act |
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Term
| What are your rights under the FCRA? |
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Definition
| Access to your file, Limits who can view your file, Disputing inaccurate information, Removal of outdated information, Exclusion of your name from CRA lists |
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Term
| To check the credit rating of a business, where do you check? |
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Definition
| Better Business Beaureu, Experian and Dunn, and Bradstreet |
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Term
| What are the three most common sources of funding? |
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Definition
| Bank Loans, Credit Cards, Family and Friends |
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Term
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Definition
| Responsibility of a person who causes harm to another through negligence |
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Term
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Definition
| Failure to excercise the care and concern a reasonable and prudent person would in a given situation |
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Term
| Who decides when you're negligent? |
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Definition
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Term
| What is liability insurance? |
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Definition
| Insurance to cover damage or injuries to property or persons for which you are found to be responsible |
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Term
| What is property insurance? |
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Definition
| Cover loss of or damage to policyholder's property |
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Term
| What is equipment insurance? |
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Definition
| Provides coverage for lost damaged or destroyed equipment |
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Term
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Definition
| Electronic Data Processing, it protects electronic data processing equipment and its software in case of magnetic or electronic disturbance |
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Term
| What is extra expense coverage? |
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Definition
| Covers extra expense incurred to run your business in the case of insured peril |
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Term
| What is an Errors and Omissions policy? |
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Definition
| Pays defense cost if you're sued for negligence |
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Term
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Definition
| Covers expense incurred by not being able to complete an engagement due to illness or injury |
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Term
| What do we call the owners of an LLC? |
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Definition
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