Case Study Ownership Quiz

Charlotte and Ethan are considering starting a business together. What is the benefit of having limited liability in their business?

• Owners are personally responsible for all debts

• Owners are not personally responsible for business debts

• Business can never be sued

• Business has unlimited life

Benjamin and Abigail are starting a new business. What does filing Articles of Incorporation achieve for their business?

• It closes the business

• It legally recognizes the business as a corporation

• It increases product prices

• It reduces the number of employees

Benjamin and Grace are starting a new business and are considering forming a Limited Liability Company (LLC). Why might they choose this option?

• To have unlimited liability

• To avoid legal recognition

• To protect owners' personal assets

• To increase tax rates

Elijah is starting a new coffee shop and wants to have complete control over the business. What type of business structure should he choose?

• Corporation

• Partnership

• Sole proprietorship

• Limited Liability Company (LLC)

David and Lily are starting a bakery together. In which business structure do they share ownership?

• Sole proprietorship

• Corporation

• Limited Liability Company (LLC)

• Partnership

Grace and Rohan are planning to start a business and want to issue stocks. What is the most complex business structure they should consider?

• Limited Liability Company (LLC)

• Sole proprietorship

• Partnership

• Corporation

Benjamin started a small bakery as a sole proprietorship. Who is responsible for all debts and obligations of the business?

• The government

• The employees

• The sole proprietor

• The customers

Anika and Benjamin are starting a new business and want a structure that combines elements of both a corporation and a partnership. Which business structure should they choose?

• Sole proprietorship

• Limited Liability Company (LLC)

• S Corporation

• General partnership

Jackson and Nora are considering starting a business and are exploring different business structures. What is a key advantage of forming a corporation?

• Unlimited liability for owners

• Ability to raise capital through stock issuance

• Simple tax filing process

• Minimal regulatory requirements

Aria is starting a small bakery business and wants full control over it. Which business structure is most suitable for her?

• Corporation

• Partnership

• Sole proprietorship

• Limited Liability Company (LLC)