Business Types

Which type of business must have at least 2 people to form the company?

• Corporation
• Partnership
• Sole proprietorship
• Limited liability company

A ______is a legal entity that is separate and distinct from its owners. Under the law, ______ possess many of the same rights and responsibilities as individuals.

• LLC
• corporation
• sole proprietorship
• partnership

• A ____ ____is an unincorporated business with only one owner who pays personal income tax on profits earned.

• public corporation
• corporate partnership
• limited liability company
• sole proprietorship

• Any entity or individual can be a member of an ____ with the notable exceptions of banks and insurance companies.

• corporation
• partnership

• sole proprietorship

• LLC

A distinguishing characteristic of a ____ is limited liability. Its shareholders profit through dividends and stock appreciation but they are not personally liable for the company's debts.

• partnership
• corporation
• sole proprietorship
• LLC

Both ___ and ____are allowed to pass through their profits, along with the responsibility for paying the taxes on them, to their owners.

• nonprofit organizations and LLCs
• sole proprietorships and C corporations
• LLCs and sole proprietorships
• partnerships and LLCs

In a general _____, all parties share legal and financial liability equally.

• sole proprietorship
• corporation
• LLC
• partnership

• Most small businesses start as ____ _____ and end up transitioning to a limited liability entity or corporation as the company grows.

• franchises or cooperatives
• sole proprietorship

• corporations or LLCs
• nonprofits or charities

The shareholders of a ____ typically receive one vote per share and may hold an annual meeting during which they elect a board of directors.

• corporation

• hospital
• school
• government

Like a corporation, ____provide their owners with limited liability in the event the business fails.

• unlimited liability companies
• limited liability companies
• sole proprietorships
• partnerships