Business Basics and Liability 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>A sole proprietorship, also known as a sole trader, is owned by one person and operates for their benefit. The owner operates the business alone and may hire employees.</p> Signup and view all the answers

<p>Corporations provide limited liability for their owners/members, as well as being subject to corporate tax rates. A corporation is more complicated and expensive to set up, but offers more protection and benefits for the owners/members.</p> Signup and view all the answers

<p>Small businesses are defined as having a small number of employees and/or less annual revenue than a regular-sized business or corporation.</p> Signup and view all the answers

<p>Examples of small businesses in many countries include service or retail operations such as convenience stores, small grocery stores, bakeries or delicatessens, hairdressers or tradespeople, restaurants, motels, photographers, very small-scale manufacturing, and Internet-related businesses such as web design and computer programming.</p> Signup and view all the answers

<p>Fewer than five hundred employees are required to qualify for many U.S. Small Business Administration programs.</p> Signup and view all the answers

<p>Some professionals that operate as small businesses include lawyers, accountants, dentists, medical doctors, and developers.</p> Signup and view all the answers

<p>Small businesses can be classified according to various methods, such as annual revenues, shipments, sales, assets, annual gross, net revenue, net profits, and the number of employees.</p> Signup and view all the answers