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Questions and Answers
What is the definition of a sole proprietorship?
What is the definition of a sole proprietorship?
- A legal entity distinct from individuals
- A partnership with unlimited liability
- A business owned by one person (correct)
- A business owned by multiple people
What does unlimited liability mean in the context of business?
What does unlimited liability mean in the context of business?
- The damages are limited to a specific amount
- The owners are not responsible for any damages
- The business is not liable for any damages
- All damages are the owner's responsibility (correct)
What is the key characteristic of a general partnership?
What is the key characteristic of a general partnership?
- The partnership is owned by only a few individuals
- Each partner has joint authority and joint liability (correct)
- Limited liability for all partners
- One partner has unlimited liability
What is the primary difference between a public corporation and a private corporation?
What is the primary difference between a public corporation and a private corporation?
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What is the definition of limited liability in a business context?
What is the definition of limited liability in a business context?
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