Answer Happy

Match the following: 6 Limited liability company Publicly held corporation 2 Angel investors 7 Double taxation Match each of the options above to the items below. 3 Articles of Incorporation 8 Limited liability 4 Like an S corporation, but there are no limitations on the number of owners as in an S corporation. Has stock traded on a stock exchange such as the New York Stock Exchange (NYSE). S Corporation Describes (a) the nature of the firm's business activities, (b) the shares to be issued, and (c) the composition of the initial board of directors. 5 Venture capital firms

Wealthy individuals willing to risk investment funds on a promising business venture. Stockholders can lose no more than the amount they invest in the company. Corporate earnings are taxed twice - at the corporate level and individual stockholder level. Allows for legal treatment as a corporation, but tax treatment as a partnership. Provide additional financing, often in the millions, for a percentage ownership in the company.