ECONOMICS
COMPETITION AND MARKET STRUCTURES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Sole proprietorship
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Partnership
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Corporation
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Sole proprietorship and partnership
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Corporation and sole proprietorship
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Detailed explanation-1: -Defined or limited life. Typically, the life term of the partnership is established by agreement. Unlike corporations, which have an unlimited life, partnerships end when a new partner is accepted or a partner leaves (and a new partnership may be created), or the partnership dissolves.
Detailed explanation-2: -Unlike other businesses that can be passed down from generation to generation or continue to exist long after the passage of its original board of directors, sole proprietorships have a limited life.
Detailed explanation-3: -Limited liability company (LLC) However, members of an LLC are considered self-employed and must pay self-employment tax contributions towards Medicare and Social Security. LLCs can have a limited life in many states.
Detailed explanation-4: -Structure: A partnership involves two or more individuals, whereas a sole proprietor is a single person operating a business alone. A partnership may form an agreement that outlines operational terms and other business matters to regulate any future disagreements.