Understanding Business Structures

Which type of business structure is described as being easy to set up with full control by the owner?

• Corporation

• Non-profit Organization

• Partnership

• Sole Proprietorship

What is a major risk associated with sole proprietorships?

• Limited resources

• Short business life

• Unlimited liability

• High tax rates

What is the consequence of the 'unlimited liability' in a sole proprietorship?

• Business cannot incur debt

• Only business assets can be seized

• Personal assets can be seized

• Only profits are affected

In a partnership, what are the partners legally responsible for?

• Only their own debts

• Only the company's profits

• Each other's debts

• None of the above

What is a key advantage of forming a partnership over a sole proprietorship?

• Limited control

• Higher taxes

• Access to more resources

• Increased liability

What distinguishes a corporation from other types of business structures?

• It cannot raise capital through stock

• It is considered a separate legal entity

• It has unlimited liability

• It is easier to set up

Which business structure allows raising capital through stockholders?

• Sole Proprietorship

• Partnership

• Corporation

• Cooperative

Which business structure is characterized by having its own tax requirements and being harder to set up?

• Corporation

• Franchise

• Partnership

• Sole Proprietorship

What is a key advantage of a Partnership over a Sole Proprietorship?

• Limited liability

• More capital available

• No need for registration

• Profits are not taxed

This type of company has only one worker who is also the owner?

• sole proprietorship
• general partnership
• C corporation
• LLC