1-10 Ownership

What is the purpose of Articles of Incorporation?

• To outline the rights and responsibilities of partners

• To legally establish a corporation as a recognized entity under state law

• To limit the liability of investors

• To define the management structure of a partnership

Which type of corporation explicitly considers public benefit in its decisions?

• C Corporation

• General Partnership

• Benefit Corporation (B Corp)

• Limited Partnership

What is a key characteristic of a C Corporation?

• Unlimited liability for partners

• Limited decision-making power for investors

• Ability to sell unlimited shares of stock to the public

• No government regulation

What is a Corporation?

• A business owned by two or more people

• A legal entity separate from its owners, controlled by a board of directors

• A hybrid business structure with limited liability

• A document outlining partnership rights

What does Liability refer to in a business context?

• The ability to sell shares

• The legal responsibility for debts and obligations

• The right to make decisions

• The amount of investment

What is Limited Liability?

• Unlimited decision-making power

• Restriction of potential loss to the amount invested

• Full responsibility for partner actions

• No government regulation

What is a Limited Liability Company?

• A sole proprietorship with unlimited liability

• A hybrid structure with limited liability for investors

• A partnership with no decision-making power

• A corporation with unlimited shares

What is a Limited Partnership?

• A business structure with active partners and unlimited liability

• A corporation with limited shares

• A structure with inactive partners and limited liability

• A partnership with full decision-making power

What defines a Partnership?

• A business owned by a single individual

• A legal entity separate from its owners

• A business owned by two or more people

• A corporation with public benefit goals

What is a Partnership Agreement?

• A document for establishing a corporation

• A legal document outlining partnership rights and obligations

• A structure with limited liability

• A business owned by one person