Understanding Business Ownership

What is a business?

• A business is a type of government organization.

• A business is solely a non-profit entity.

• A business is an organization that provides goods or services to consumers for profit.

• A business is a place where people gather for social events.

What is a sole proprietorship?

• A sole proprietorship is owned by multiple partners.

• A sole proprietorship is a business owned and operated by one person.

• A sole proprietorship is a government-run business.

• A sole proprietorship is a type of corporation.

Who owns a sole proprietorship?

• A partnership

• An individual

• A government entity

• A corporation

What is a partnership?

• A partnership is a type of sole proprietorship.

• A partnership is a business structure where two or more individuals share ownership and management responsibilities.

• A partnership is a legal agreement for personal loans.

• A partnership is a government program for small businesses.

How many people are in a partnership?

• 2 or more

• 3

• 1

• 5 or more

What is a corporation?

• A corporation is a type of small business.

• A corporation is a group of individuals working together without legal status.

• A corporation is a form of government organization.

• A corporation is a legal entity that is separate from its owners.

Who owns a corporation?

• Board of Directors

• CEO

• Employees

• Shareholders

What is a limited liability company (LLC)?

• An LLC is a partnership that offers no protection against personal liability.

• A limited liability company (LLC) is a business structure that protects its owners from personal liability while providing tax flexibility.

• A limited liability company (LLC) is a government entity that manages public services.

• A limited liability company (LLC) is a type of corporation that requires no tax filings.

What does LLC stand for?

• Local Liability Company

• Limited Liability Cooperative

• Limited Liability Company

• Limited Liability Corporation

What is a benefit of a corporation?

• No tax benefits compared to sole proprietorships.

• Difficulties in raising capital.

• Unlimited liability for owners.

• Limited liability protection for owners.