Types of Business Structures

What is a Proprietorship?

• A business owned and operated by two or more individuals.

• A legal entity created to conduct business, separate from its owners.

• A business owned and operated by a single individual.

• An organization that operates for a charitable, educational, religious, or scientific purpose.

Which of the following is a key point of a Partnership?

• Owned by shareholders.

• Sole ownership.

• Partners share profits and losses.

• Focuses on benefiting society or a specific cause.

What is a Corporation characterized by?

• Joint decision-making power.

• Limited liability for shareholders.

• Sole ownership.

• Operates for a charitable purpose.

What is the main purpose of a Non-Profit Organization?

• To share profits and losses.

• To be owned and operated by a single individual.

• To conduct business for profit.

• To operate for a charitable, educational, religious, or scientific purpose.

What is a Cooperative?

• A government agency providing financial assistance.

• A business arrangement between two or more companies.

• An organization owned and operated by its members who share benefits and responsibilities.

• A business structure that combines liability protection of a corporation with flexibility and tax benefits of a partnership.

Which of the following is a characteristic of a Joint Venture?

• Unlimited duration.

• Single ownership and decision-making.

• Shared ownership and decision-making.

• Pass-through taxation.

What does a Limited Liability Corporation (LLC) provide for its owners?

• Reliance on donations and grants.

• Shared profits among members.

• Limited liability for owners.

• Financial assistance from the government.

What is the purpose of a Subsidy?

• To provide a business structure with limited liability.

• To collectively own and manage a business.

• To promote economic growth or address societal goals.

• To create a business arrangement for a specific project.

What is a Quasi-Public Corporation?

• A corporation with a limited number of shareholders, often family members or close associates.

• A corporation where a government entity has a significant degree of control or influence.

• A corporation whose shares are publicly traded on the stock market.

• A legal document that establishes a corporation and outlines its purpose, structure, and regulations.

Which of the following is an example of an Open Corporation?

• A family-owned business where only immediate family members are shareholders.

• Public transportation companies that are partially owned or controlled by the government.

• Companies like Apple, Microsoft, or Google, where anyone can buy shares and become a partial owner.

• A corporation with a limited number of shareholders, often family members or close associates.