2. Forms of Business Organizations PART A: Businesses can be classified into the

Question

2. Forms of Business Organizations PART A: Businesses can be classified into the following forms: a proprietorship, a partnership, a corporation, a limited liability company (LLC), and a limited liability partnership (LLP). Different forms of businesses have different characteristics. Which of the following characteristics would apply to a corporation? Select all that apply. A. Chartered by a state and is its own entity separate from its owners B. Has unlimited life C. Exempt from double taxation D. Easier to transfer ownership in the form of stock E. Owned by single individual F. Owners have limited liabitlity PART B: You come across different kinds of businesses every day. The following table describes some businesses. Using the description of each business, classify it as a proprietorship, a corporation, or a limited liability company/limited liability partnership. A. Tyler, the CEO of a beverage company, is required to file the company's quarterly and annual employment, financial and tax reports with the state and federal authorities. B. Michael founded an operated a wedding planning agency, which specialized in celebrity weddings. When he dies, his business was dissolved because there was no plan for control after his death. C. jackson started a business, based in a different state, with his uncle. Due to the business's underperformance, they had to close the business. Jackson, however, ended up losing his hourse due to a litigation claim. D. Tyler, Jackson and Jose own an accounting firm in San Francisco. All share in the profits of the firm proportionately and file taxes at an individual level. According to their agreement, none of the owners will be held personally liable for the accounting firm's debt.

Explanation / Answer

D.) Easier to transfer ownership in the form of stock b.) Michael founded an operated a wedding planning agency, which specialized in celebrity weddings. When he dies, his business was dissolved because there was no plan for control after his death

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