Podcast
Questions and Answers
Which type of business entity is formed to sell a product or service?
Which type of business entity is formed to sell a product or service?
- Cooperatives
- Corporations (correct)
- Sole traders
- Partnerships
Which type of business entity is specifically permitted and labeled in some countries?
Which type of business entity is specifically permitted and labeled in some countries?
- Partnerships
- Cooperatives (correct)
- Sole traders
- Corporations
Which type of business entity is formed by two or more individuals who share the profits and liabilities?
Which type of business entity is formed by two or more individuals who share the profits and liabilities?
- Sole traders
- Corporations
- Partnerships (correct)
- Cooperatives
Which type of business entity is owned and operated by a single individual?
Which type of business entity is owned and operated by a single individual?
Which type of business entity is a legal entity that is separate from its owners and shareholders?
Which type of business entity is a legal entity that is separate from its owners and shareholders?
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Study Notes
Types of Business Entities
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Corporation
- Formed to sell products or services.
- Acts as a legal entity distinct from its owners.
-
Limited Liability Company (LLC)
- Specifically recognized in many countries.
- Offers flexibility and limited liability to its owners.
-
Partnership
- Created by two or more individuals.
- Partners share profits and liabilities equally unless otherwise agreed.
-
Sole Proprietorship
- Owned and operated by a single individual.
- Owner has full control but also bears complete liability.
-
Business Corporation
- A separate legal entity from its owners and shareholders.
- Limits owners' personal liability for business debts and lawsuits.
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