Business Classifications Quiz

What is the primary drawback of a sole proprietorship?

• Complex tax requirements

• Limited access to resources

• Unlimited liability for the owner

• Limited control over the business

What is a consequence of a partnership in terms of liability?

• Limited liability for all partners

• Unlimited liability for all partners

• Limited liability for the primary partner

• Unlimited liability for the primary partner

What is a key benefit of incorporating a business as a corporation?

• Infinite life of the business

• Parallel life of the business with an individual

• Personal liability for business debts

• Limited access to capital

Which business organization has the easiest setup process?

• Sole proprietorship

• Partnership

• Corporation

• Limited liability company

What is a potential source of financing for a sole proprietorship?

• Angel investors

• Government grants

• Personal investments

• Venture capital funding

Which business organization is considered a separate legal entity?

• Sole proprietorship

• Limited liability company

• Partnership

• Corporation