Understanding Business Ownership Types

Who owns a sole proprietorship?

• A board of directors

• A single individual

• Shareholders

• Two or more individuals

In a partnership, how is control of the business typically shared?

• By a single owner

• By a board of directors

• Equally among partners

• By shareholders

What type of liability do shareholders in a corporation have?

• Unlimited personal liability

• Limited liability

• Joint liability

• No liability

How is income from a sole proprietorship taxed?

• At the corporate tax rate

• At the owner's personal income tax rate

• At a partnership tax rate

• It is not taxed

Who manages a corporation?

• A single owner

• Partners

• A board of directors

• Employees

What is the liability status of partners in a general partnership?

• Limited liability

• Unlimited personal liability

• No liability

• Liability only for their investment

How is income from a partnership taxed?

• At the corporate tax rate

• At the partnership level

• Passed through to partners and taxed at individual rates

• It is not taxed

Who are the owners of a corporation?

• A single individual

• Partners

• Shareholders

• A board of directors

What is a key characteristic of a sole proprietorship regarding control?

• Control is shared among partners

• Control is managed by a board of directors

• The owner has full control

• Control is determined by shareholders

In a corporation, who appoints the board of directors?

• The CEO

• The shareholders

• The employees

• The government