Important Characteristics of Organizational Forms (of Businesses)

Question 1

What type of owners and how many does a proprietorship have?

Answer 1

Proprietor: one

Question 1

What type of owners and how many does a partnership have?

Answer 1

Partners: two

Question 2

What type of owners and how many does a corporation have?

Answer 2

Shareholders: one or more

Question 3

What is the owner’s liability in a proprietorship?

Answer 3

Unlimited

Question 4

What is the owner’s liability in a partnership?

Answer 4

Unlimited

Question 5

What is the owner’s liability in a corporation?

Answer 5

Limited

Question 6

Is a proprietorship a separate legal entity?

Answer 6

No

Question 7

Is a partnership a separate legal entity?

Answer 7

No

Question 8

Is a partnership a separate legal entity?

Answer 8

Yes

Question 9

How are taxation of profits done on a proprietorship?

Answer 9

Paid by the owner

Question 10

How are taxation of profits done on a partnership?

Answer 10

Paid by the partners

Question 11

How are taxation of profits done on a corporation?

Answer 11

Paid by the corporation

Question 12

What is the life of a proprietorship?

Answer 12

Limited

Question 13

What is the life of a partnership?

Answer 13

Limited

Question 14

What is the life of a corporation?

Answer 14

Unlimited