How to form a business
9 important questions on How to form a business
What are the qualifications for S Corporations?
- Shareholders are individuals living in the US
- Shareholders only have one class of stock
- They do not gain more than 25% of their income from passive sources
What are the advantages of a LLC?
- flexible laws
- free choice of tax type
- flexible distribution of losses and gains
- operational flexibility
What are the disadvantages of a LLC?
- Short life span
- the employees pay tax as if they are part of a sole proprietorship
- More paperwork
- Higher grades + faster learning
- Never study anything twice
- 100% sure, 100% understanding
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What's the role of stockholders in the corporate hierarchy?
What are the types of mergers?
- Horizontal merger; joins two firms in the same industry and allows them to diversify or expand their products
- Conglomerate mergers; unites firms in completely unrelated industries in order to diversify business operations and investments
What's a leveraged buyouts
What's a franchise agreement?
What are the disadvantage of a franchise?
- Shared profit
- Management regulation
- Coattail effects (the performance by other franchisees influence your opportunities)
- Restrictions on selling
- Fraudulent franchisors
What are the advantages/disadvantages from home-based franchises?
Disadvantages; isolation, long hours
The question on the page originate from the summary of the following study material:
- A unique study and practice tool
- Never study anything twice again
- Get the grades you hope for
- 100% sure, 100% understanding
