BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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corporation
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partnership
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sole proprietorship
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Detailed explanation-1: -Essentially, the owner of the business shares the same identity as the company. Therefore, the owner is fully liable for any and all liabilities incurred by the company.
Detailed explanation-2: -Sole Proprietorship – This is the traditional and popular form of business organization. Its formation is simple, and the owner controls the complete operations of a business and is liable for all financial burdens and debts.
Detailed explanation-3: -An LLC is a corporate structure in the United States whereby the owners are not personally liable for the company’s debts or liabilities. Limited liability companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship.
Detailed explanation-4: -Concept of “limited liability partnership" The LLP is a separate legal entity, is liable to the full extent of its assets but liability of the partners is limited to their agreed contribution in the LLP.