Exploring Business Structures (Day 2) Exit Ticket

1. What is the main purpose of forming a limited partnership?

• 1. To avoid taxes

• 1. To limit liability for some partners

• 1. To equalize profit sharing

• To simplify management

1. Which business structure requires the least amount of formal paperwork to establish?

• 1. Corporation

• 1. Partnership

• 1. Sole Proprietorship

• Limited partnership

1. What is a potential disadvantage of a sole proprietorship?

• 1. Shared profits

• 1. Limited decision-making

• 1. Unlimited personal liability

• 1. Corporate taxes

1. Which business structure is least likely to survive the owner’s death?

• 1. Corporation

• 1. Partnership

• 1. Sole Proprietorship

• 1. Limited liability company

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• Unlimited Liability

• LLC

• Perpetual Existence

• Sole Proprietorship

• Allows for different management styles

• Partnership

• Potential for conflict

• Corporation