15-2 Types of Business Ownership Glossary

What is the purpose of Articles of Incorporation?

• To dissolve a corporation

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

• To merge two corporations

• To sell shares to the public.

A Benefit Corporation (B Corp) is a corporation that explicitly considers ______ in its decisions rather than only maximizing shareholder value.

• public benefit

• profit

• employee satisfaction

• market share

What is a C Corporation (C Corp) allowed to do?

• Sell limited shares of its stock

• Operate without government regulation

• Sell unlimited shares of its stock to the general public

• Avoid reporting financial information.

A Corporation is a legal entity that is separate from its owners and controlled by a ______.

• single owner

• board of directors

• partnership

• government agency

In a General Partnership, all partners have decision-making and management power and have ______ liability.

• limited

• unlimited

• shared

• no

What does Liability refer to?

• The ability to make profits

• The legal responsibility for actions, debts, and obligations

• The right to own property

• The power to make decisions.

Limited Liability restricts an individual’s potential loss to the ______ amount of their investment in a company.

• total

• partial

• double

• none

A Limited Liability Company is a hybrid business structure that combines the operational characteristics of a ______ while limiting the liability of the investors.

• corporation

• sole proprietorship or partnership

• government agency

• non-profit organization

In a Limited Liability Partnership, all partners have decision-making and management power but have ______ liability.

• no

• limited

• shared

• unlimited

What is a Limited Partnership?

• A business structure where all partners are active

• A business structure where one or more partners are not active and have limited liability

• A corporation with unlimited liability

• A sole proprietorship with limited liability.