Understanding Business Structures Quiz

What is the primary document required to legally form a corporation?

• Partnership Agreement

• Articles of Incorporation

• Liability Agreement

• Operating Agreement

Which type of business structure is characterized by having unlimited liability?

• Limited Liability Company

• Corporation

• Sole Proprietorship

• S Corporation

A corporation that can sell unlimited shares of its stock to the general public, is heavily regulated by the government, and reports its financial information to the public.

• Cooperative

• Corporate

• Commercial

• Corporation

Which business structure is specifically designed to create a positive impact on society and the environment?

• S Corporation

• Benefit Corporation (B Corp)

• General Partnership

• Limited Liability Partnership

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

• Unlimited liability

• Limited liability

• Double taxation

• No legal protection

Which type of partnership allows partners to have limited liabilities?

• General Partnership

• Limited Liability Partnership

• Sole Proprietorship

• C Corporation

What is a key characteristic of a General Partnership?

• Limited liability

• Unlimited liability

• Double taxation

• No liability

Which type of corporation is known for passing income directly to shareholders to avoid double taxation?

• C Corporation

• S Corporation

• Benefit Corporation

• Limited Liability Company

What document outlines the terms and conditions of a partnership?

• Articles of Incorporation

• Partnership Agreement

• Liability Agreement

• Operating Agreement

Which business structure is owned and operated by a single individual?

• Corporation

• General Partnership

• Sole Proprietorship

• Limited Liability Company