Middle School Business Technology Business Entities

What is a sole proprietorship?

• A business owned by two or more people

• A business owned and run by a single person

• A business with limited liability

• A business without taxes

In a sole proprietorship, who has full control of the business?

• A board of directors

• A partnership

• The single owner

• The government

What is a significant advantage of a sole proprietorship?

• Limited access to money

• Personal responsibility for debts

• Easy to start

• Complex legal requirements

In a partnership, who shares responsibilities and profits?

• The government

• A single owner

• Two or more people

• A corporation

What is a potential disadvantage of a partnership?

• Shared responsibilities

• Access to more skills and resources

• Potential for disputes

• Limited personal liability

What is a corporation's primary characteristic?

• A separate legal entity from its owners

• Limited personal liability for owners

• A single owner with full control

• Simple legal requirements

Why is a board of directors important in a corporation?

• To share responsibilities

• To make major business decisions

• To increase personal liability

• To simplify legal requirements

What is an advantage of a corporation?

• Limited personal liability

• Limited access to money

• Easy setup and maintenance

• Single taxation

Which business entity combines features of a corporation and a partnership?

• Sole proprietorship

• Limited Liability Company (LLC)

• Partnership

• Limited access to money

What does LLC stand for?

• Low Liability Corporation

• Limited Liability Company

• Legal Liability Corporation

• Large Liability Company