Types of business in terms of legal structure

What is the legal structure of a business owned and operated by a single individual?

• Limited Liability Company

• Sole Proprietorship

• Corporation

• Partnership

In a partnership, who shares the management responsibilities and profits or losses?

• Members

• Shareholders

• Partners

• Officers

What type of liability do partners have in a partnership?

• No liability

• Unlimited liability

• Joint and several liability

• Limited liability

How is the business income taxed in a sole proprietorship?

• Taxed as partnership income

• Taxed as corporate income

• Exempt from tax

• Taxed as personal income of the owner

What is the ownership structure of a limited company?

• Owned by shareholders

• Owned by members

• Owned by partners

• Owned by officers

In a corporation, who owns the corporation by holding shares of stock?

• Partners

• Members

• Officers

• Shareholders

What is the characteristic of a cooperative business?

• Double taxation

• Limited liability

• Exemption from federal income tax

• Democratic governance structure

What is the legal entity that is separate from its owners and can enter contracts, sue, and be sued?

• Sole Proprietorship

• Partnership

• Corporation

• Cooperative

What type of business entity is organized for purposes other than making a profit?

• Nonprofit Organization

• Cooperative

• State Owned Enterprise

• Limited Liability Company

What is a public limited company owned by the state commonly referred to as?

• Government-owned corporation

• National airlines

• Telecommunications companies

• Utilities