INTRODUCTION TO ENTREPRENEURSHIP
TYPES OF ENTREPRENEURSHIP
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Partnership
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Corporation
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Sole proprietorship
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Limited liability partnership
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Detailed explanation-1: -capital. Corporations have unlimited life. Ownership is easily transferable.
Detailed explanation-2: -Because the corporation has a legal life separate from the lives of its owners, it can (at least in theory) exist forever. Transferring ownership of a corporation is easy: shareholders simply sell their stock to others.
Detailed explanation-3: -An unlimited liability company involves general partners and sole proprietors who are equally responsible for all debt and liabilities accrued by the business. Most companies opt to form limited partnerships, where a partner’s liability cannot exceed their investment in the company.
Detailed explanation-4: -Sole proprietors have unlimited liability and are legally responsible for all debts against the business. Their business and personal assets are at risk.