INTRODUCTION TO ENTREPRENEURSHIP
CHARACTERISTICS OF AN ENTREPRENEUR
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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proprietorship
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limited liability company
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partnership
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corporation
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Detailed explanation-1: -Limited liability companies are hybrid entities that combine the characteristics of a corporation with those of a partnership or sole proprietorship.
Detailed explanation-2: -A Limited Liability Partnership (LLP) is a business relationship in which one partner is not responsible for the negligent acts committed by another partner or by the employees not under that partner’s supervision.
Detailed explanation-3: -An LLC provides its members with more flexibility and control, it also limits personal liability. There are two types of LLC management structures: member-managed LLC and manager-managed LLC. A member-managed LLC may consist of single or multiple members. Each member has the authority to make decisions to bind the LLC.
Detailed explanation-4: -An LLC offers personal liability protection from any debts or lawsuits filed against the business for all individual members. With an LLP, partners are personally liable, but only for their own negligence. This means that one partners is not held responsible for the actions of another partner.