Forms of Business Ownership

Question 1

A form of business ownership that protects shareholders from personal liability if the business is sued. This is because the corporation is a separate legal entity, something that’s not the case with a partnership. Corporations can be designated either as profit or nonprofit.

Answer 1

Corporation

Question 2

A form of business ownership that has more than one partner (owner).

Answer 2

General Partnership

Question 3

A general partnership that lasts only for a limited time, such as for the duration of a project.

Answer 3

Joint Venture

Question 4

A form of business ownership that has taxation pass-through to the partners, just like a partnership, while also having the limited liability of a corporation. In other words, partners are not typically liable for the debt of the LLC.

Answer 4

Limited liability company

Question 5

A form of business ownership in which one partner is not exposed financially to, or personally liable for, the possible malfeasance of another partner.

Answer 5

Limited liability partnership

Question 6

A form of business ownership almost identical to a general partnership, except that there is at least one limited partner.

Answer 6

Limited partnership

Question 7

A form of corporation that serves the public interest and therefore is not primarily concerned with turning a profit.

Answer 7

Nonprofit corporation

Question 8

A form of business ownership that is the same as a standard corporation, but with one difference: S corporations can be taxed in the same way as a partnership.

Answer 8

S Corporation

Question 9

The name given to a person who owns the corporation. Most corporations have more than one, and sometimes hundreds or thousands, of shareholders.

Answer 9

Shareholder

Question 10

The most common form of business ownership. As the name implies, a sole proprietorship is a business of one.

Answer 10

Sole Proprietorship