Exploring Business Structures Quizs

Disadvantage: Decision-making can be slower due to the need for consensus.

• Partnership

• Sole Proprietorship

• Corporation

• Limited Liability Company

A law firm owned by several attorneys who share profits and responsibilities.

• Corporation

• Sole Proprietorship

• Partnership

• Limited Liability Company

Disadvantage: Increased regulatory scrutiny and compliance requirements.

• Corporation

• Sole Proprietorship

• Partnership

• Limited Liability Company

Advantage: Profits go directly to the owner and are taxed as personal income.

• Sole Proprietorship

• Partnership

• Corporation

• Limited Liability Company

Shareholders are not personally liable for the corporation's debts.

• Sole Proprietorship

• Partnership

• Corporation

• Limited Liability Company

Advantage: Easier access to capital from multiple partners.

• Sole Proprietorship

• Corporation

• Partnership

• Limited Liability Company

Disadvantage: Potential for conflicts and disagreements among partners.

• Sole Proprietorship

• Corporation

• Partnership

• Limited Liability Company

A hybrid business entity that combines the characteristics of a corporation and a partnership or sole proprietorship.

• Limited Liability Company (LLC)

• Sole Proprietorship

• General Partnership

• Corporation

Disadvantage: General partners have unlimited liability for business debts.

• Sole Proprietorship

• Corporation

• Partnership

• Limited Liability Company

Advantage: Perpetual existence, allowing the business to continue despite changes in ownership.

• Sole Proprietorship

• Partnership

• Corporation

• Limited Liability Company