MacroEconomics - Business Organizations

Which of the following is a type of business ownership where a single individual owns and operates the business?

• Corporation

• Partnership

• Sole Proprietorship

• Limited Liability Company (LLC)

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DOK Level 1: Recall

What is one major advantage of a sole proprietorship?

• Limited liability

• Easy to establish and dissolve

• Double taxation

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Which of the following is a disadvantage of partnerships?

• Limited liability

• Double taxation

• Unlimited liability

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In a Limited Liability Company (LLC), who is protected from personal liability for business debts?

• Only the managers

• Only the owners

• Both owners and managers

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Which of the following is the most common type of business ownership?

• Sole Proprietorship

• Partnership

• Corporation

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What is one disadvantage of a partnership?

• Easy to establish

• Shared profits

• Single taxation

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Which type of business ownership is characterized by having shareholders?

• Sole Proprietorship

• Partnership

• Corporation

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What is one key difference between an LLC and a corporation?

• LLCs have unlimited liability

• Corporations are easier to establish

• LLCs are easier to establish

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What is a common feature of corporations that helps them raise capital?

• Issuing shares of stock

• Single taxation

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Which type of business ownership is most likely to face double taxation?

• Partnership

• Corporation

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DOK Level 1: Recall