Businesses can be classified into the following forms: a proprietorship, a partn
ID: 2740795 • Letter: B
Question
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? Check all that apply Owned by single individual Easier to transfer ownership in the form of stock Owners have limited liability Has unlimited life Exempt from double taxation Chartered by a state and is its own entity separated from its separated from its owners 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 partnership, a corporation, or a limited liability or company/limited liability partnership. Jake started a tutoring website. After a few months, a publishing company filed a lawsuit against his company for copyright infringement. Jake had to shut down his business and lost all his personal assets in the process. Purple Consulting has five consultants in the firm. The company's annual revenue is around $500,000. Income is distributed among all consultant, and each is personally liable for claims if the company goes under. Teresa, the CEO of a average company, is required to certify the accuracy of information provided in the company's currently reports. Paradigm Media is a company run by a group of new media professionals. The owners of the company do not have personal liability and file taxes based on individual income.Explanation / Answer
1)Easier to transfer ownership in form of stock
Owners have limited liability
Has unlimited life
double taxation
corporation chartered by the state and its own entity separate from owners
2)
proprietorship
partnership
corporation
limited laibility partnership
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