Exam 9: The Organizational Plan

To build a successful organization culture the entrepreneur: 

In the partnership,profit and loss distribution is determined by the partnership agreement. 

In designing the organization: 

The proprietor is only personally liable for all aspects of the business when gross negligence occurs. 

Sole proprietors can access two sources of capital-personal contributions from the entrepreneur and sale of stock. 

Design decisions reflect the formal structure of the organization and the informal structure is the organization culture that evolves over time. 

One common problem,and a significant reason for many new venture failures,is the entrepreneur thinks they can do everything and is unwilling to give up responsibility to others. 

With the new tax laws passed in 2017: 

In 2018,all C Corporations receive a permanent tax cut from 35 percent to 21 percent. 

A board of directors should not: 

With the new tax laws passed in 2017,all pass through businesses receive: 

The board of directors: 

Which of the following types of ownership has the most continuity  

In an LLP,the transfer of interest of one limited partner is typically not allowed. 

The limited liability company is automatically taxed as a corporation. 

Shares of stock are issued to members of a limited liability company. 

Discuss the main advantages of an LLC over an S-Corp. 

Identify the four important considerations/strategies in recruiting and assembling an effective team and organizational culture outlined in the text. 

Liability is one of the most critical reasons for establishing a: 

Shareholders in an S corporation have the same liability protection as shareholders in a C corporation.