Gmetrix: Domain 1.1 Structures

A business structure is _____________________.

• The legal form of a business

• how a business makes money

A business model

• is the legal form of the business

• how the business makes money

An entrepreneur is a person who seeks out opportunity and takes risk to create a business.

• True

• False

A product is a __________.

• tangible, physical item that can be touched.

• a skill or expertise performed for another person

A liability is the amount you could potentially owe.

• True

• False

Limited liability is an advantage of some business structures because ________.

• It caps the amount of money you could owe to the amount invested in the business.

• you could owe more money than you invested in the business.

Which of the following business structures have the ADVANTAGE of limited liability? Select ALL three that apply.

• Sole proprietorship

• Limited Liability Company

• C-Corp

• S-Corp

Which business is the easiest to form and requires no formal representation?

• C-Corp

• S-Corp

• Sole Proprietorship

• Partnership

A sole proprietorship, which requires no registration, has one owner.

• True

• False

C-corporations are the largest companies in the world.

• True

• False