Legal Structures Quiz

Which legal structure is characterized by having no ownership and is not subject to US federal taxes?

• C-Corp

• S-Corp

• Non-profit

• LLC

What is a key characteristic of a C-Corp?

• Single owner seeking low risk

• Shared financial backing

• Lower tax rate to prevent double taxation

• Best for international business even with being double-taxed

What is a disadvantage of a proprietorship?

• No US federal taxes

• Comes with unlimited liability

• Ideal for a single owner seeking low risk

• Shared financial backing

Which legal structure is known for a lower tax rate that prevents the company from being double-taxed?

• Non-profit

• C-Corp

• LLC

• S-Corp

What is a characteristic of an LLC?

• No US federal taxes

• Best for international business

• Ideal for a single owner seeking low risk

• Comes with unlimited liability

Which legal structure involves shared financial backing?

• Proprietorship

• Non-profit

• Partnership

• S-Corp

What is the role of a CEO in a company?

• Manages day-to-day operations only

• Responsible for the company's financial accounts

• Highest ranked and responsible for the business's success

• Handles customer service inquiries

Who does the CEO report to?

• The shareholders

• The Board of Directors

• The customers

• The employees

What is one of the CEO's responsibilities?

• Organizing company outings

• Developing the company's vision, strategy, and mission

• Directly managing all hiring processes

• Conducting performance reviews for all staff

What is one of the responsibilities of a CFO?

• In charge of marketing strategies

• Manages and plans cash flow

• Oversees human resources

• Directs customer service operations