Types of Business Entities Quiz

Nonprofit corporation = Organization that does not pay taxes and does not exist to make a profit. Sole proprietorship = Business owned and managed by one person. Limited liability company = Special type of corporation allowed by states that is taxed as if it were a sole proprietorship or partnership. Cooperative = Business owned and operated by its user-members for the purpose of supplying themselves with goods and services.

Officer = Top executive who is hired to manage a business. Proprietor = Person who owns and manages a business and often performs the day-to-day tasks, with the help of hired employees. Intrapreneur = An employee who is given funds and freedom to create a special unit or department within a company in order to develop a new product, process, or service. Creditor = Person or business to whom money is owed.

Partnership = Business owned by two or more people. Corporation = Business owned by a group of people and authorized by the state in which it is located to act as though it were a single person, separate from its owners. Sole proprietorship = Business owned and managed by one person. Limited liability company = Special type of corporation allowed by states that is taxed as if it were a sole proprietorship or partnership.

Partnership agreement = A written agreement between two or more people identifying how the partners will add capital, labor, or other assets and divide any profits. Joint venture = Agreement among two or more businesses to work together to provide a good or service. Business plan = A written document that describes the nature of the business, its goals and objectives, and how they will be achieved. Board of directors = Ruling body of a corporation.

Proprietor = Sole proprietorship Shareholders = Corporation Members = Limited liability company Co-owners = Partnership