INTRODUCTION TO ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Franchise & Nonfranchise
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General & Limited Partnerships
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LLC & Corporation
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Sole Proprietorship & Entrepreneurship
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Detailed explanation-1: -A Limited Liability Company (LLC) is a business structure allowed by state statute. Each state may use different regulations, you should check with your state if you are interested in starting a Limited Liability Company. Owners of an LLC are called members.
Detailed explanation-2: -An LLC can be formed by an individual, while a partnership requires more than one person. An LLC has a separate legal entity from its owners. A partnership firm doesn’t have any separate legal entity from its partners. An LLC is formed by filing the “Articles of Organization” with the secretary of the state office.
Detailed explanation-3: -A business that is a sole proprietorship will typically cease operations if the business owner dies. The company’s assets would be considered part of the sole proprietor’s estate, and from that point, the estate of the owner is distributed based on what is in the owner’s will.