19 Questions
What is a key characteristic of a sole proprietorship in terms of liability?
Unlimited liability
In a general partnership, how many individuals are required to come together to establish the business?
Two or more
What type of legal entity is a general partnership?
Unincorporated entity
What level of control does a sole proprietor have over business decisions?
Complete control
What type of liability do individual partners have in a general partnership?
Unlimited liability
Which legal structure provides owners with protection from legal liabilities for injuries?
Corporation
In terms of liability, how does a general partnership compare to a corporation?
General partnerships offer unlimited liability unlike corporations.
Which type of legal entity is a corporation?
Independent legal entity
What characteristic allows owners in a corporation to enjoy limited liability?
Legal separation between owners and business
What type of liability does a sole proprietor face in their business?
Unlimited liability
Which type of legal structure allows for complete control over business decisions?
Sole proprietorship
In a general partnership, how is liability distributed among individual partners?
Joint and several liability
What characteristic distinguishes a limited liability partnership from a general partnership?
Protection from personal liability for certain partners
Which legal entity offers owners the benefit of limited liability protection?
Corporation
What type of business structure provides owners with the potential for the highest financial benefits?
Sole proprietorship
Which form of business structure involves a legal separation between the owner and the business?
Sole proprietorship
In which type of business structure can owners collectively enter into legally binding contracts?
Corporation
What is a key disadvantage of a general partnership compared to a corporation?
Unlimited personal liability for owners
What feature distinguishes a limited liability partnership from a limited partnership?
Limited personal liability for all partners
Learn about corporations as a complex form of organization governed by statutes and regulations in Canadian business law. Understand the roles of incorporators, shareholders, directors, and officers in creating and managing a corporation.
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