ARE 5.0 Practice Management Exam With Verified Solutions Graded A+

ARE 5.0 Practice Management Exam With Verified Solutions Graded A+ 5 types of firms - 1. Sole Proprietorship 2. General/Limited Partnership 3. Corporation 4. LLC/LLP 5. Joint Venture Sole Proprietorship - Key Features - 1. One owner 2. Requires only name/location and logo/license 3. Formation: Easy to set up 4. Tax advantage: business expense/loos deducted from gross business income 5. Disadvantage: Owner personally liable for company debts/losses. Personal credit to establish credit/raise capitol 6. Longevity: when owner retires firms closes. General Partnership - Key Features - 1. Two or more people "partners", each partner brings different talent (managers must be "member") 2. Share management/risk/profit 3. Formation: partnership agreement. 4. Tax: income shared by partners and reported on personal tax (disadvantage). 5. Disadvantage: Each partner personally liable and liable for actions of others. Personal assets are vulnerable. 6. Longevity: Typically partnership dissolved when one leaves.