Economics

Some refer to a _____ as a “legal person

• partnership

• Corporation

• limited liability company

• sole proprietorship

Which of the following business structures is synonymous with a sole proprietorship?

• Partnership

• Corporation

• Limited liability company (LLC)

• Individual ownership

In a limited partnership, what is the role of the limited partners?

• They have limited liability but are actively involved in the busines

• They have unlimited personal liability

• They have full control and management of the partnership.

• They have limited liability and are passive investors

Which factor differentiates a limited liability company (LLC) from a corporation?

• Taxation

• Limited liability

• Management structure

• Number of owners

Stephen and Mike start a consulting service to help businesses manage their trademarks and patents. They are the only partners, sharing equally in the work, profits, and losses

• limited liability partnership

• general

• limited partnership

Choose the correct answer

Which type of partnership is often chosen by professionals like lawyers and accountants?

• Joint venture

• General partnership

• Limited partnership

• Limited liability partnership (LLP)

Identify the type of business

Rosa and Serena carefully review expansion plans after new partners provide extra funds. However, they know that they remain fully liable if their decisions are not sound.

correct answer:

Which type of corporation is known for its pass-through taxation and limited liability for owners?

• S corporation

• C corporation

• Limited liability company (LLC)

• Sole proprietorship

What is the main disadvantage of double taxation associated with C corporations?

• Corporate profits are not taxed

• Shareholders have no liability protection

• Shareholders pay taxes twice on their dividends

• Shareholders pay no taxes

What is a corporation's primary characteristic?

• Simple management structure

• Limited liability for shareholders

• Unlimited personal liability for owners