PBM 4.02 Content Page Review

What is a key feature of a sole proprietorship regarding decision-making?

• Decisions are made by a board

• Decisions are made by the owner

• Decisions are made by shareholders

• Decisions are made by employees

What is a key characteristic of a partnership?

• Limited liability for partners

• Only one owner

• Unlimited liability for partners

• Income taxed twice

How is income taxed in a partnership?

• Taxed twice on corporate returns

• Taxed once on partners' individual returns

• Not taxed at all

• Taxed at a flat rate

Which partnership type offers protection from debts?

• General Partnership

• Limited Partnership

• Limited Liability Partnership

• Limited Liability Limited Partnership

Which partnership type combines features of limited partnership and limited liability?

• General Partnership

• Limited Partnership

• Limited Liability Partnership

• Limited Liability Limited Partnership

Which type of business has stricter regulations than sole proprietorships or partnerships?

• Sole proprietorship

• Partnership

• Corporation

• Limited liability company

What is the lifespan of a corporation?

• Limited to 10 years

• Limited to 50 years

• Unlimited

• Limited to 100 years

What does the term "unlimited lifespan" mean for a corporation?

• It can operate indefinitely

• It must renew every 10 years

• It ends with the owner's death

• It has a fixed end date

What is a key advantage of a corporation's complex structure?

• Easier management

• Ability to raise large amounts of capital

• Fewer regulations

• Simpler tax filings

What type of brand does a franchise typically have?

• Recognizable

• Unknown

• Local-only

• Temporary