Questions and Answers
Which form of business organization is the simplest and is owned and operated by a single individual?
Sole Proprietorship
In which form of business organization do partners have unlimited liability?
Partnership
Which form of business organization allows for the sharing of ownership and management between two or more individuals or entities?
Partnership
Which form of business organization has the simplest taxation, as profits and losses are reported on the owner's personal tax return?
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Which form of business organization has a legal framework that allows for limited liability?
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Study Notes
Business Organizations
- A Sole Proprietorship is the simplest form of business organization, owned and operated by a single individual.
- Partners in a General Partnership have unlimited liability, meaning personal assets are at risk in case of business debts or lawsuits.
- A Partnership allows for the sharing of ownership and management between two or more individuals or entities.
- A Sole Proprietorship has the simplest taxation, as profits and losses are reported on the owner's personal tax return.
- A Corporation has a legal framework that allows for limited liability, protecting owners' personal assets.
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