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Ch 22: Types of Business Organizations

About This Chapter

Watch online video lessons to learn about S corporations, flow-through tax treatment, stock dividends and more. Each lesson is accompanied by a short multiple-choice quiz you can use to check your understanding of these business topics.

Types of Business Organizations - Chapter Summary and Learning Objectives

In this chapter, our instructors introduce you to the varying types of partnerships, companies and corporations. You can explore the advantages and disadvantages of each as well as their tax responsibilities and member liability. By the end of this chapter, you should be familiar with the following concepts:

  • Relationships between partnership type and individual liability
  • Processes for creating and dissolving partnerships or corporations
  • Differing tax structures for corporations and partnerships
  • Responsibilities of a corporation's board members and officers

Video Objective
What Is Sole Proprietorship: Definition, Advantages & Disadvantages Describes a business organization in which one owner is responsible for all profits and losses
Creating a Business Partnership Agreement Illustrates the steps involved in creating a partnership and the considerations for drafting a partnership agreement
Tax Structure and Liability of Business Partnerships Describes flow-through tax treatment and the liability of each partner's actions
Dissolution and Termination of a Partnership Explains when a dissolution occurs and the procedures involved in 'winding up' a partnership
General Partnership: Definition, Advantages & Examples Defines a general partnership and explains the partners' liabilities
What Is a Limited Partnership? - Definition, Advantages & Disadvantages Provides an overview of business organizations containing partners who do not participate in management decisions and therefore do not carry any liability
What Is a Limited Liability Partnership? - Definition, Advantages & Disadvantages Explores the pros and cons of a limited liability partnership in which members are not held liable for each other's negligent behavior
What Is a Limited Liability Company? - Definition, Benefits & Examples Describes a limited liability company's legal structure and explains the role of its members
How to Create a Corporation Summarizes the process of creating a corporation before defining and discussing S corporations
Shareholder, Board of Director & Officer Roles Discusses corporate structure and the roles of shareholders, board members and officers in overseeing day-to-day operations and organizational goals
What Are Dividends? - Investing in Stocks Outlines classes of shares and stocks, as well as dividends and how they're determined
Tax Structure and Liability of Corporations Defines double taxation, limited liability and the legal decision known as 'piercing the corporate veil'
How to Dissolve a Corporation Explains the steps required to dissolve a corporation, including voting among its members and filing the proper forms with the state

13 Lessons in Chapter 22: Types of Business Organizations
What Is Sole Proprietorship: Definition, Advantages & Disadvantages

1. What Is Sole Proprietorship: Definition, Advantages & Disadvantages

Most businesses are sole proprietorships. This is the easiest and most straightforward type of business to form. Sole proprietorships are owned and run by only one person. This lesson explains sole proprietorships.

Creating a Business Partnership Agreement

2. Creating a Business Partnership Agreement

Many businesses are partnerships. These are businesses owned by two or more people. This lesson explains how partnerships are created and the use of partnership agreements.

Tax Structure and Liability of Business Partnerships

3. Tax Structure and Liability of Business Partnerships

Many businesses are partnerships. These are unincorporated businesses owned by two or more people. This lesson explains the tax structure of partnerships and the liability of general partners.

Dissolution and Termination of a Partnership

4. Dissolution and Termination of a Partnership

A partnership is an unincorporated business owned by two or more people. When the partners decide to no longer do business together, they must dissolve, wind up and terminate the partnership. This lesson explains dissolution and winding up.

General Partnership: Definition, Advantages & Examples

5. General Partnership: Definition, Advantages & Examples

Many businesses are structured as general partnerships. General partners share both the benefits and obligations of the business. This lesson explains general partnerships, including the advantages and the liabilities.

What Is a Limited Partnership? - Definition, Advantages & Disadvantages

6. What Is a Limited Partnership? - Definition, Advantages & Disadvantages

Many businesses are formed as partnerships. There are several different types of partnerships. This lesson explains the advantages and disadvantages of limited partnerships.

What Is a Limited Liability Partnership? - Definition, Advantages & Disadvantages

7. What Is a Limited Liability Partnership? - Definition, Advantages & Disadvantages

Many businesses are formed as partnerships. There are actually several different types of partnerships, including limited liability partnerships. This lesson explains the advantages and disadvantages of limited liability partnerships.

What Is a Limited Liability Company? - Definition, Benefits & Examples

8. What Is a Limited Liability Company? - Definition, Benefits & Examples

A limited liability company is a popular business structure that provides the benefits of both a partnership and a corporation. This lesson explains the benefits of limited liability companies.

How to Create a Corporation

9. How to Create a Corporation

A corporation is a complex business structure that allows for the separate existence of the business from the individuals that run the business. This lesson explains corporations and how to create a corporation.

Shareholder, Board of Director & Officer Roles

10. Shareholder, Board of Director & Officer Roles

A corporation is a complex business structure made up of many different individuals. This lesson explains the corporate roles of shareholders, the board of directors and officers.

What Are Dividends? - Investing in Stocks

11. What Are Dividends? - Investing in Stocks

Many people are interested in stock investment, and there are a few basic terms investors and business people should understand. This lesson explains dividends, common stock and preferred stock.

Tax Structure and Liability of Corporations

12. Tax Structure and Liability of Corporations

A corporation is a complex business structure with unique characteristics pertaining to taxation and liability. The advantages of a corporation are subject to certain rules. This lesson explains double taxation, limited liability and piercing the corporate veil.

How to Dissolve a Corporation

13. How to Dissolve a Corporation

Corporations generally have perpetual existence. Therefore, a corporation must be dissolved if the owners wish to terminate the corporation's existence. This lesson explains corporate dissolution.

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