Business Structure Basics Quiz

Which business structure is the simplest and usually involves just one individual?

• Sole Proprietorship

• Corporation

• Limited Liability Company

• Partnership

What is a major advantage of a partnership in terms of taxes?

• Higher tax rates

• No tax obligations

• Pass-through taxation

• Double taxation

Which business structure provides liability protection to its owners?

• General Partnership

• Sole Proprietorship

• Limited Partnership

• Corporation

What is a key disadvantage of forming a corporation?

• Unlimited shareholders

• Double taxation

• Simple regulations

• Limited liability

Which business structure allows income and losses to be passed through to shareholders?

• Limited Partnership

• C Corporation

• S Corporation

• General Partnership

What is a unique feature of a Limited Liability Company (LLC)?

• Limited liability for general partners

• Mandatory dissolution after 30 years

• Double taxation

• Unlimited number of shareholders

Which form of business is not subject to double taxation?

• General Partnership

• C Corporation

• Sole Proprietorship

• Limited Partnership

What is a disadvantage of a sole proprietorship?

• Unlimited shareholders

• Complex tax filing

• Limited liability

• Difficulty in raising funds

Which business structure requires filing articles of organization?

• Limited Liability Company

• S Corporation

• General Partnership

• Sole Proprietorship

What is a characteristic of a limited partnership?

• All partners have equal liability

• Limited partners have no control over the company

• It is the simplest business structure

• It is subject to double taxation