Business Ownership and Liability Quiz
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Questions and Answers

What does business refer to?

  • Exclusively referring to corporations
  • Any activity undertaken for personal interest
  • Engaging in non-profit ventures
  • Making a living by producing or buying and selling products (correct)

    • How is the taxation system for businesses different from that of corporations?

  • Corporations have higher tax rates than businesses
  • Businesses are personally taxed on all income, unlike corporations (correct)
  • Businesses are exempt from taxation
  • Businesses and corporations have the same taxation system

    • How does having a business name impact the owner's liability?

  • The owner has no liability for any business-related matters
  • The owner's liability is limited to the business's profits
  • The owner's personal possessions are protected from business debts
  • The owner is responsible and liable for the business's debts (correct)

    • What legal distinction exists between corporations and sole proprietors?

    <p>Corporations are separate legal entities, unlike sole proprietors</p> Signup and view all the answers

    What does the term 'business' colloquially refer to?

    <p>A company, such as a corporation or cooperative</p> Signup and view all the answers

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