Gmetrix D1L1

What is a Non-profit legal structure?

• A) No ownership, no US federal taxes

• B) Best for international business

• C) Easy to create but comes with unlimited liability.

What is a C-Corp best for?

• Lower tax rate

• International business even with being double-taxed

• Shared financial backing.

What is a key characteristic of a Proprietorship?

• A) Easy to create but comes with unlimited liability

• B) Ideal for a single owner seeking low risk

• C) Shared financial backing

What is a key benefit of an S-Corp?

• No ownership, no US federal taxes

• Lower tax rate that prevents the company from being double-taxed

• Best for international business.

What is an LLC ideal for?

• A) Shared financial backing

• B) A single owner seeking low risk

• C) Easy to create but comes with unlimited liability.

What is a key feature of a Partnership?

• A) No ownership, no US federal taxes

• B) Shared financial backing

• C) Best for international business

True or False: Sole proprietorships are a good choice for owners who want to test their business idea before forming a more formal business.

• True

• False

Partnerships might be a good choice for businesses with multiple owners because:

• they allow for shared responsibility and resources.

• they require less paperwork than corporations.

• they offer limited liability to all partners.

• they are easier to dissolve than sole proprietorships.

LLCs protect your personal assets by:

• Separating personal and business liabilities

• Combining personal and business liabilities

• Increasing personal liabilities

• None of the above

LLCs might be a good choice for medium- or higher-risk businesses because:

• They offer limited liability protection.

• They are easy to form and manage.

• They provide tax flexibility.

• All of the above.