Lesson 1

Question 1

Is an enterprise or any lawful activity that provides products or services desired by customers for profit.

Answer 1

Business

Question 2

Forms of Business Organization

Answer 2

Sole Proprietorship
Partnership
Corporation
Cooperative
Limited Liability Company

Question 3

This popular form of business structure is the easiest to set up.

have one owner who makes all of the business
decisions and there is no distinction between the business and the owner.

Answer 3

Sole Proprietorship

Question 4

You can classify a business partnership as either general or limited.

Answer 4

Partnership

Question 5

allow both partners to invest in a business with 100% responsibility for any business debts.
They don’t require a formal agreement.

Answer 5

General Partnership

Question 6

require owners to file paperwork with the state and compose formal agreements that describe all of the important details of the partnership, such as who is responsible for certain debts.

Answer 6

Limited Partnership

Question 7

a business organization acts as a unique and separate entity from its shareholders.
It pays its taxes before distributing profits or dividends to shareholders.

Answer 7

Corporation

Question 8

are separate taxable entities, subject to double taxation.
offer more flexibility but potentially higher tax implications.

Answer 8

C Corporation

Question 9

are pass-through entities, where profits and losses pass through to shareholders’ personal tax returns.
have ownership restrictions

Answer 9

S Corporation

Question 10

A domestic corporation takes on its own liabilities and is held responsible for its debts, and its shareholder will only be held liable to the level of their share capital.

Answer 10

LLC or Limited Liability Corporation

Question 11

is an autonomous and duly registered association of persons, with a common bond of interest, who have voluntarily joined together to achieve their social, economic, and cultural needs and aspirations by making equitable contributions to the capital required, patronizing their products and services.

Answer 11

Cooperative

Question 12

A domestic corporation takes on its own liabilities and is held responsible for its debts, and its shareholder will only be held liable to the level of their share capital.

Answer 12

Limited Liability Company