What Are the Different Legal Forms That a Small Business

question 33

Essay

What are the different legal forms that a small business can take? Explain the factors that should be considered when choosing a legal form.

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Definitions:

Funds

Financial resources that are set aside for a specific purpose or investment, including both publicly traded funds and private investments.

Corporate Tax Liability

Corporate tax liability is the total amount of tax that a corporation is legally obligated to pay to the government based on its taxable income.

Capital Structure

The mix of a company’s long-term debt, specific short-term debt, common equity, and preferred equity, which determines its financial leverage.