ESB Practice Exam 1 Questions with 100% Correct Answers | Verified | Updated 2024, Exams of Advanced Education

Download ESB Practice Exam 1 Questions with 100% Correct Answers | Verified | Updated 2024 and more Exams Advanced Education in PDF only on Docsity! ESB Practice Exam 1 Questions with 100% Correct Answers | Verified | Updated 2024 What is entrepreneurship? - Correct Answer-Setting up a business with the aim to make a profit. B2B - Correct Answer-Purchases requiring a tax exemption certificate; wholesale flooring distributor B2C - Correct Answer-motorcycle repair shop; chain of local grocery stores S - Corporation - Correct Answer-offers many of the same benefits as a c corporation, but better for small businesses. 100 shareholders maximum allowed. all must be US citizens or residents. shareholders are not personally responsible for business liabilities. c-corporation - Correct Answer-best if the company plans to someday sell stock to the public; can issue shares to founders, employees, and investors. unlimited owners (aka shareholders) allowed. shareholders are not personally responsible for business liabilities. taxed twice - business pays at the corporate level, and shareholders pay on income received. a separate tax return is required for the business sole proprietorship - Correct Answer-best if you need an easy set-up. you may still need a dba or business licenses to operate legally, but no other paperwork one owner maximum. the owner is personally responsible for business liabilities. no personal liability protection. taxed once - you pay on profits in your personal tax return. separate tax return not needed Limited Liability Company (LLC) - Correct Answer-popular choice for business concerned about liability protection. unlimited owners (aka members) allowed. no shareholders. llcs cannot go public. members are not personally responsible for business liabilities. an llc can choose how to be taxed by filing form 8832 with the irs. an llc can elect to be taxed as a sole proprietorship, partnership, s corp, or c corp. an llc is not recognized globally; ypu may be taxed as a corporation in other countries. owners of equity - Correct Answer-founders, partners, and shareholders an example of ______ compensation is paying field laborers for the amount of fruit they pick - Correct Answer-piece work a _______ employee receives a set amount of pay each month without overtime compensation for extra hours worked - Correct Answer-salary