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Forms of businesses and organization Businesses can be classified into the follo

ID: 2813441 • Letter: F

Question

Forms of businesses and organization

Businesses can be classified into the following forms: proprietorship, partnership, corporation, limited liability company (LLC), and limited liability partnership (LLP) Different forms of businesses have different characteristics. Which of the following characteristics belong to a limited liability partnership? Check all that apply Might be an S corporation Distinguishes between general and limited owners General partners involved in the day-to-day operations of the business deemed limited partners You see and read about different kinds of businesses every day. The following scenarios describe two businesses. Use the description of each business to classify it as a proprietorship, partnership, corporation, or limited liability partnership and/or limited liability company (LLP/LLC). Business #1 Business #2 Li and his uncle started a software development company. Without his uncle's knowledge, Li illegally used another company's code to meet the needs of a client. The resulting lawsuit closed the business and bankrupted both Li and his uncle Carlos founded and operated a lunch-only catering business, which specialized in providing fresh, delectable, eat-at-your-desk lunches to office workers. When he died, the business was dissolved because there was no plan for succession (control) in the event of his death This is an example of: This is an example of: O A corporation O A partnership O A proprietorship O An LLP/LLC O An LLP/LLC O A corporation O A proprietorship O A partnership

Explanation / Answer

1-

distinguishes between general and limited owners

2-

Business -1

partnership

business-2

sole proprietorship

1-

distinguishes between general and limited owners

2-

Business -1

partnership

business-2

sole proprietorship