Question

Match the following legal business type with its definition below. Write the correct letter next to the corresponding question.

A) Proprietorship B) Partnership C) Corporation D. Limited Liability Company

25. Business owned by two or more people, each whom is responsible for the firm’s debt and share in profit _______

26. Known as hybrids as their profits and losses pass through to their owners, without taxation to the entity directly______

27. Separate legal entity. owned by shareholders, who are responsible for the firm’s debt to the extent of their investment _______

28. Business owned by one person, who is responsible for unlimited liability of the firm and enjoys all profit _____

Answer 1

  

_______________________________

_______________________________

Proprietorship = Business owned by one person, who is responsible for unlimited liability of the firm and enjoys all profit

Partnership = Business owned by two or more people, each whom is responsible for the firm’s debt and share in profit

Corporation = Separate legal entity. owned by shareholders, who are responsible for the firm’s debt to the extent of their investmen

Limited Liability Company = Known as hybrids as their profits and losses pass through to their owners, without taxation to the entity directly

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