Business Basics Quiz
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Questions and Answers

What is the definition of a sole proprietorship?

  • A business structure that provides limited liability for owners
  • A business owned by multiple individuals
  • A business owned and operated by one person (correct)
  • A business that is subject to corporate tax rates

    • How does having a business name affect the business entity?

  • It makes the owner personally responsible for business debts (correct)
  • It exempts the owner from liability for business debts
  • It separates the business entity from the owner
  • It allows the business to be taxed at corporate rates

    • What distinguishes corporations from sole proprietors and partnerships?

  • They provide limited liability for their owners/members (correct)
  • They are not subject to corporate tax rates
  • They are simpler and less expensive to set up
  • They are owned and operated by one person

    • How is the taxation system different for businesses compared to corporations?

    <p>Businesses are personally taxed on all income</p> Signup and view all the answers

    What is a characteristic of a corporation's legal status?

    <p>It provides limited liability for its owners/members</p> Signup and view all the answers

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