10 Questions
What is the definition of business?
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.
What is the responsibility of a business owner regarding debts incurred by the business?
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.
How does the taxation system for businesses differ from that of corporations?
A business structure does not allow for corporate tax rates. The proprietor is personally taxed on all income from the business.
What is a separate legal entity that provides limited liability for its owners/members?
Corporations are a separate legal entity and provide limited liability for their owners/members.
How is the term 'business' often colloquially used?
The term 'business' is often colloquially used to refer to a company, such as a corporation or cooperative.
What is the difference between a business entity and the owner of the business?
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.
What can creditors do if a business acquires debts?
If a business acquires debts, creditors can go after the owner's personal possessions.
How is the taxation system for businesses different from that of corporations?
The taxation system for businesses does not allow for corporate tax rates. The proprietor is personally taxed on all income from the business.
How is the term 'business' often colloquially used?
The term 'business' is often colloquially used to refer to a company, such as a corporation or cooperative.
What does a business structure not allow for?
A business structure does not allow for corporate tax rates.
Test your knowledge on business basics and legal responsibilities with this quiz. Learn about the importance of business names and the liabilities that come with owning a business.
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