Business Structures Quiz

What is a key advantage of a sole proprietorship?

• Limited liability

• Complete control

• Easier to raise capital

• Shared resources

Which type of business is owned by two or more people?

• Sole Proprietorship

• Corporation

• Partnership

• Limited Liability Company

In a general partnership, what do all partners share?

• Limited liability

• Equal responsibility and liability

• No liability

• Unlimited resources

What is a disadvantage of a sole proprietorship?

• Limited liability

• Harder to raise capital

• Double taxation

• Complex management

Which type of partnership includes both general and limited partners?

• General Partnership

• Limited Partnership (LP)

• Limited Liability Partnership (LLP)

• Sole Proprietorship

What is a characteristic of a corporation?

• Owned by one person

• Unlimited personal liability

• Separate legal entity owned by shareholders

• Limited to 100 shareholders

What is a benefit of an S Corporation?

• Double taxation

• Limited liability

• Unlimited shareholders

• Complex setup

What is a disadvantage of a corporation?

• Limited liability

• Easier to raise capital

• Double taxation

• Flexible management

Which business structure combines the benefits of a corporation and a partnership?

• Sole Proprietorship

• General Partnership

• Limited Liability Company (LLC)

• S Corporation

What is a pro of a Limited Liability Company (LLC)?

• Unlimited personal liability

• Complex management

• Pass-through taxation

• Double taxation