Business Structure and Liability Quiz

Owners must use their personal wealth to pay business debts. (correct)

Owners will only lose their investment in the business.

Owners can transfer their debts to another entity.

Owners' personal assets are protected from business debts.

Shareholders risk their personal wealth.

Shareholders are only at risk for their investment amount. (correct)

Shareholders do not receive dividends.

Shareholders can engage in the day-to-day management of the company.

To produce and sell goods at costs exceeding revenues.

To minimize expenses regardless of revenue.

To secure investments without a focus on profitability.

To produce and sell goods with revenues exceeding total costs. (correct)

<p>Unincorporated businesses expose owners to unlimited liability.</p> Signup and view all the answers

<p>A reward for shareholders based on their level of investment.</p> Signup and view all the answers