Business Basics and Legal Responsibilities Quiz

Business is the practice of making one's living or making money by producing or buying and selling products (such as goods and services). It is also any activity or enterprise entered into for profit.

The owner of the business is responsible and liable for debts incurred by the business. If the business acquires debts, the creditors can go after the owner's personal possessions.

A business structure does not allow for corporate tax rates. The proprietor is personally taxed on all income from the business.

<p>Corporations are a separate legal entity and provide limited liability for their owners/members.</p> Signup and view all the answers

<p>The term 'business' is often colloquially used to refer to a company, such as a corporation or cooperative.</p> Signup and view all the answers

<p>The business entity and the owner of the business are not separate, meaning the owner is responsible and liable for the debts incurred by the business.</p> Signup and view all the answers

<p>If a business acquires debts, creditors can go after the owner's personal possessions.</p> Signup and view all the answers

<p>The taxation system for businesses does not allow for corporate tax rates. The proprietor is personally taxed on all income from the business.</p> Signup and view all the answers

<p>The term 'business' is often colloquially used to refer to a company, such as a corporation or cooperative.</p> Signup and view all the answers

<p>A business structure does not allow for corporate tax rates.</p> Signup and view all the answers