ENTREPRENEURSHIP

INTRODUCTION TO ENTREPRENEURSHIP

TYPES OF ENTREPRENEURSHIP

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

When comparing the four main types of business organizations, which protects owners the MOST from personal financial liability due to being sued by a customer?

A	Sole Proprietorship
B	Partnership
C	Franchise
D	Corporation

Explanation:

Detailed explanation-1: -Corporations are a separate legal entity created by shareholders. Incorporating a business protects owners from being personally liable for the company’s debts or legal disputes. A corporation is more complicated to create, as compared to the other three types of businesses.

Detailed explanation-2: -A limited liability company (LLC) is a corporate structure that protects its investors from personal responsibility for its debts or liabilities.

Detailed explanation-3: -Partnerships–General and Limited Each partner contributes money, property, labor, or skill; each shares in the profits and losses of the business; and each has unlimited personal liability for the debts of the business.

Detailed explanation-4: -Sole proprietorship. A sole proprietorship is easy to form and gives you complete control of your business. Partnership. Partnerships are the simplest structure for two or more people to own a business together. Limited liability company (LLC) Corporation. Cooperative.

There is 1 question to complete.