BTEC Test 1

What is the simplest form of business ownership?

• Corporation

• Sole Proprietorship

• Partnership

• Limited Liability Company (LLC)

In a sole proprietorship, who bears the liability for the business's debts?

• The employees

• The customers

• The owner

• The government

What is a key characteristic of a general partnership?

• Partnerships have limited liability

• Partners share equal responsibilities and liabilities

• Only one partner manages the business

• Partners do not share profits

In a limited partnership, what is the main role of the limited partner?

• To manage the business

• To make key decisions

• To contribute financially

• To handle debts

Which business structure combines elements of a sole proprietorship and a corporation?

• Limited Liability Company (LLC)

• General Partnership

• Limited Partnership

• Sole Proprietorship

What does 'limited liability' mean for members of a company?

• They are not responsible for any business debts

• They are only responsible for the amount they invested

• They must pay all the company's debts

• They are responsible for other members' debts

Which of the following is a key feature of Limited Liability Partnerships (LLPs)?

• No tax benefits

• Double taxation

• Pass-through taxation

• No personal asset protection

What is a disadvantage of Limited Liability Partnerships (LLPs)?

• Unlimited liability for all partners

• State-specific rules and regulations

• Inability to raise capital

• Required to have only one partner

In an LLP, who is typically protected from personal liability?

• All partners

• General partners only

• Limited partners only

• Shareholders

Which type of business structure is best for professionals like lawyers and accountants?

• Sole Proprietorship

• Public Limited Company

• Limited Liability Partnership (LLP)

• Corporation