Edmentum Econ - Unit 2 - Lesson 4

Which type of business is described by the following:

The business owners’ personal assets are protected from liabilities, but the business is not a separate tax entity.

• limited liability corporation

• sole proprietorship

• partnership

• corporation

Which type of business is described by the following:

One business owner may contribute less time and effort than the other, leading to disputes and bitterness.

• limited liability corporation

• sole proprietorship

• partnership

• corporation

Which type of business is described by the following:

The business structure is strictly regulated by the government and the company is owned by shareholders.

• limited liability corporation

• sole proprietorship

• partnership

• corporation

Which type of business is described by the following:

A single individual is personally responsible for all liabilities incurred by the business and has unlimited liability.

• limited liability corporation

• sole proprietorship

• partnership

• corporation

Match the scenario to the correct business structure:

Jeremy is a web-designer, but does not have the business knowledge required to start a business. He decides to start a business with a close friend who majored in business management. They share the profits as well as the liability.

• sole proprietorship

• partnership

• corporation

• limited liability corporation

Match the scenario to the business structure:

Square is a company that makes credit-card processing devices. The company went public in 2009 and sold shares to the public at $9 per share.

• sole proprietorship

• partnership

• corporation

• limited liability corporation

The cost of borrowing money is called ________________ (one word)

Explain what you receive when you purchase shares of company's stock (in other words, what are you purchasing?)