Explain the concept of unlimited liability as it relates to sole proprietorships.

Outline the reasons why a corporation may be referred to as an “artificial person,” and discuss why corporations suffer from “double taxation” on their profits.

The Wheel of Management figure in our textbook suggests that the planning process is a continual loop.

A junior partner is typically younger and has not been in the business as long as a senior partner. Junior partners tend to receive a smaller portion of the business profits. Junior partners rarely take an active role in managing the business affairs of the partnership. 

Owned, operated and controlled by members, a cooperative is a distinct form of the corporate form of business.

The primary advantage of the corporate form of business organization is that the stockholders (owners) are not personally liable for the debts of the organization, and in most cases are not responsible for the liability that occurs through the corporation’s business activities.

A limited partner has taken steps to limit their liability in the partnership. This agreement must be in writing. Also, limited partners may not take an active role in managing the partnership.

According to our textbook, an LLC is not required to file articles of incorporation as would be true of a corporation.

According to our textbook, strategic alliances are cooperative agreements between firms that go beyond normal firm-to-firm dealings but fall short of being a merger or full partnership and ownership.

According to our textbook, performance objectives are usually set for longer time periods than strategic goals and usually are defined by measurable results.