Business Organization Quiz

What is the most common form of business organization in the United States?

• Limited Liability Company

• Partnership

• Sole Proprietorship

• Corporation

Which form of organization allows the owner to keep all profits?

• Corporation

• Partnership

• S Corporation

• Sole Proprietorship

What is a legal entity created by the state with separate assets and liabilities from its owners?

• S Corporation

• Corporation

• Partnership

• Limited Liability Company

Which type of partnership involves a complete sharing in both the management and the liability of the business?

• Limited Partnership

• S Corporation

• General Partnership

• Joint Venture

What is the advantage of a Limited Liability Company (LLC)?

• Perpetual life

• Ease of transfer of ownership

• Limited liability and taxation like a partnership

• Securing funding is easier

What is the disadvantage of a Corporation?

• Perpetual life

• Ease of transfer of ownership

• Limited liability

• Double taxation

What is the main advantage of a Partnership?

• Easy to organize

• Limited liability

• Double taxation

• Unlimited liability

What is the main disadvantage of a Partnership?

• Unlimited liability

• Ease of transfer of ownership

• Limited liability

• Double taxation

What is the advantage of an S Corporation?

• Perpetual life

• Ease of transfer of ownership

• Taxed as a partnership

• Limited liability

What is the disadvantage of an S Corporation?

• Double taxation

• Perpetual life

• Limited liability

• Ease of transfer of ownership