Business Trade Names and Forms Quiz

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What is the main advantage of forming a sole proprietorship?

Double taxation of profits

Shared management control

Limited personal liability (correct)

Higher startup costs

Why is it important to register a trade name for a business?

To allow others to sue or resolve issues (correct)

To share ownership with a partner

To ensure personal liability protection

To avoid contributing capital

What happens to the assets of a sole proprietorship after the owner's death?

They are sold to pay off any business debts

They automatically go to the general partners

They are liquidated and distributed to employees

They go to the deceased's estate and can be incorporated by executors (correct)

What is a key disadvantage of a sole proprietorship in terms of business continuity?

Dependence on a single individual for operations Signup and view all the answers

How are net profits of a sole proprietorship taxed?

Taxed as part of the owner's personal income Signup and view all the answers

Which form of business structure allows for unlimited personal liability?

General partnership Signup and view all the answers

What type of partnership has unlimited personal liability for general partners but no personal liability for limited partners?

Limited partnership Signup and view all the answers

Which business structure faces 'double taxation' due to corporate earnings and shareholder dividends being taxed separately?

C Corporation Signup and view all the answers

In which structure do all owners have limited liability for the acts of other partners?

Limited liability partnership Signup and view all the answers

Which structure allows an unlimited number of general and limited partners?

Limited partnership Signup and view all the answers

Which business entity requires filing a Certificate of Limited Liability Partnership at SDAT?

Limited liability partnership Signup and view all the answers

Which structure can be created by certain professionals like accountants, attorneys, architects, dentists, or doctors?

Limited liability partnership Signup and view all the answers

Business Trade Names and Forms Quiz

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Questions and Answers

What is the main advantage of forming a sole proprietorship?

Why is it important to register a trade name for a business?

What happens to the assets of a sole proprietorship after the owner's death?

What is a key disadvantage of a sole proprietorship in terms of business continuity?

How are net profits of a sole proprietorship taxed?

Which form of business structure allows for unlimited personal liability?

What type of partnership has unlimited personal liability for general partners but no personal liability for limited partners?

Which business structure faces 'double taxation' due to corporate earnings and shareholder dividends being taxed separately?

In which structure do all owners have limited liability for the acts of other partners?

Which structure allows an unlimited number of general and limited partners?

Which business entity requires filing a Certificate of Limited Liability Partnership at SDAT?

Which structure can be created by certain professionals like accountants, attorneys, architects, dentists, or doctors?

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