Types of Business Ownership

What is the definition of a small business?

• A business with fewer than 100 employees

• A business with fewer than 500 employees

• A business with fewer than 50 employees

• A business with fewer than 10 employees

What is a Limited Liability Partnership (LLP)?

• A partnership with no liability for partners.

• A partnership where liability is limited to the amount invested.

• A sole proprietorship with limited liability.

• A corporation with shared liability.

What type of business structure combines characteristics of a sole proprietorship and a partnership?

• Corporation.

• Limited Liability Company (LLC).

• General Partnership.

• Limited Partnership.

What type of partnership is associated with doctors' offices and law firms?

• General Partnership.

• Limited Liability Partnership.

• Limited Partnership.

• Sole Proprietorship.

What is a disadvantage of a C Corporation?

• Limited liability

• Double taxation

• Unlimited shares

• No public reporting

What is a benefit of an LLC over a C Corp for entrepreneurs?

• Double taxation

• Preferred structure for many years

• Unlimited shares

• Heavily regulated

What does "double taxation" mean in the context of a C Corp?

• The company pays taxes twice a year.

• The company and owners both pay taxes on income.

• Only the owners pay taxes.

• Only the company pays taxes.

What is the main advantage of a C Corporation in terms of shares?

• Limited shares

• Unlimited shares

• No shares

• Restricted shares

What is a common feature of a B Corp?

• Traditional business structure.

• Excludes public benefit.

• Relatively new legal structure.

• Focuses only on shareholder value.

What is the main advantage of a Non-Profit Corporation?

• It can sell shares to the public

• It receives special tax treatment

• It has unlimited liability

• It can operate without a board of directors