Business Entities Quiz

What type of business entity is formed when an individual person starts a business without creating an LLC or filing articles of incorporation?

• Sole Proprietorship

• Partnership

• C Corporation

• S Corporation

Which form is filed by a partnership to report its profit or loss to the IRS?

• Form 1065

• Form 1040

• Form 2553

• Form 1120

What is the default corporate type when a corporation is created without making any election?

• S Corporation

• Partnership

• C Corporation

• LLC

Which type of business entity is subject to double taxation?

• Sole Proprietorship

• Partnership

• C Corporation

• S Corporation

What does LLC stand for?

• Legal Liability Company

• Limited Liability Corporation

• Limited Liability Company

• Legal Liability Corporation

Which type of business entity provides legal protection for personal assets similar to a corporation?

• Partnership

• Sole Proprietorship

• C Corporation

• LLC

How many shareholders can an S Corporation have?

• Unlimited

• 10,000

• 1000

• 100

Which type of partnership has at least one partner who is not actively involved in managing the business?

• General Partnership

• Limited Partnership

• Limited Liability Partnership

• Sole Proprietorship