Types of Business Entities

Front

What is the simplest form of business organization where a single individual owns and operates the business?

Back

Sole Proprietorship

Front

Which type of business entity involves two or more individuals who agree to share profits and losses?

Back

Partnership

Front

What type of business structure is considered a separate legal entity from its owners?

Back

Corporation

Front

Which business entity allows an individual or group to use the rights to a business name, logo, and products?

Back

Franchise

Front

What type of business entity combines the limited liability feature of a corporation with the tax benefits of a partnership?

Back

Limited Liability Company (LLC)

Front

In a sole proprietorship, who is personally responsible for all debts and liabilities of the business?

Back

Owner

Front

What is the term used to describe the agreement between partners that outlines the responsibilities and obligations of each partner?

Back

Partnership Agreement

Front

Which type of business entity is owned and operated by a single person without any formalities or legal requirements?

Back

Sole Proprietorship

Front

What is the term used to describe the process of selling the rights to operate a business or sell products under a particular brand?

Back

Franchising

Front

Which business entity is known for its flexibility in management and taxation while providing limited liability protection to its owners?

Back

Limited Liability Company (LLC)