Forms of Business Organizations Quiz
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Questions and Answers

Which form of business organization offers the advantage of limited personal liability?

  • Corporation (correct)
  • Limited Liability Company
  • Sole Proprietorship
  • Partnership

    • What is a key advantage of a partnership over a sole proprietorship?

  • Limited personal liability
  • Easier to establish
  • Ability to sell stock
  • Shared control (correct)

    • What characteristic makes corporations more attractive for raising funds compared to sole proprietorships or partnerships?

  • Personal liability protection
  • Tax advantages
  • Stock ownership limitations
  • Easier transfer of ownership (correct)

    • Which business organization type is associated with tax advantages, shared control, and formed due to lack of resources or unique skills?

    <p>Partnership</p> Signup and view all the answers

    What is a distinguishing feature of a corporation compared to a sole proprietorship or partnership?

    <p>Ability to sell stock of the company</p> Signup and view all the answers

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