What is a limited liability company? Explain the advantages and disadvantages of this type of business ownership?
A limited liability company (LLC) is a relatively new form of organization. Its existence must be in compliance with state law. LLC's are taxed as partnerships. Income flows through the company directly to the owners, who are called members rather than shareholders. None of the limitations associated with S Corps exist for an LLC (one class of stock, 100 or fewer owners, etc.). Members are not personally liable for debts of the company.
Disadvantages of a LLC include inconsistencies among state statutes and lack of well-established case law. Formerly, LLCs automatically terminated upon the death, bankruptcy, etc. of any member unless the majority of remaining members agreed to keep the business going. Now, however, there is a trend to permit continuation after withdrawal of a member. A sale of a member's interest must be unanimously approved by the other members unless the operating agreement states otherwise. There are no standardized forms to make formation of the business easy and inexpensive.
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A potential business owner needs to convey his or her business idea to a prospective investor or lender in ________ minutes.
A. 10 B. 5 C. 2 D. 12
Which of the following is a similarity between a memo and a voice mail??
A) ?Both memo and voice mail constitute oral communication. B) ?Neither a memo nor a voice mail requires a feedback. C) ?Both memo and voice mail are intended for an external audience. D) ?Neither a memo nor a voice mail can be used for confirming.
______ theories of motivation explain motivation as the needs that people seek to satisfy.
Fill in the blank(s) with the appropriate word(s).
Lean production and just-in-time concepts became important ______.
a. in the mid 1980s, thanks to Motorola b. in the early 1940s, thanks to Ford c. in the early 1970s, thanks to Toyota d. in the mid 1980s, thanks to General Electric