4 Forms of Business Organizations

Question 1

It is usually owned by one person

Answer 1

Sole Proprietorship

Question 2

the person is liable for the debt

Answer 2

Sole Proprietorship

Question 3

ARTICLE 1767. By the contract of partnership, two or more persons bind themselves to contribute money, property, or industry to a common fund, with the intention of dividing the profits among themselves.

Answer 3

Partnership

Question 4

explain ARTICLE 1767 in your own words

Answer 4

good job

Question 5

The law considers it a separate legal entity

Answer 5

Partnership

Question 6

It has more than one equity account

Answer 6

Partnership

Question 7

It is a separate legal entity from its owners

Answer 7

Corporation

Question 8

The Liabilities do not extend to the owners

Answer 8

Corporation

Question 9

You can identify this form of business organization as an organization that sells shares of its own company

Answer 9

Corporation

Question 10

Can be composed of natural and juridical Persons

Answer 10

Limited Liability Company (LLC)

Question 11

All members have limited liability

Answer 11

Limited Liability Company (LLC)

Question 12

It is governed by U.S laws

Answer 12

Limited Liability Company (LLC)

Question 13

Without this, your personal assets can be used as collateral when filing for bankruptcy, this is why a lot of starting entrepreneurs use this, so that they are separated from the company’s liability as well as having less paperwork

Answer 13

Limited Liability Company (LLC)

Question 14

Taxes are easier to manage in this form of business organization, can be compared to a sole proprietorship, but the difference is that it is registered as a company

Answer 14

Limited Liability Company (LLC)