Unit 9: Business Organizations
Corporations are legal entities that protect shareholders from certain legal liabilities. For example, if you start a sole proprietorship and take out a small business loan to get started, you are personally liable for that loan. If you do not repay the loan, the bank can pursue your personal assets. If you are a shareholder in a corporation that fails to pay its loans, however, the bank cannot pursue your personal assets.
Being a corporation has its own caveats. For example, corporations are subject to more regulations and fees. This unit will look into the various types of business entities in the United States and weigh the pros and cons of each. This unit emphasizes corporations because they are the most common kind of entity that most employees will work for.
Completing this unit should take you approximately 6 hours.
9.1: Sole Proprietorship
9.4: Limited Liability Companies
Unit 9 Assessment