Question

The following describe several different business organizations. Determine whether each description best refers to a sole proprietorship (SP), partnership (P), corporation (C), or limited liability company (LLC). a. Micah and Nancy own Financial Services, which pays a business income tax. Micah and Nancy do not have personal responsibility for the debts of Financial Services. b. Riley and Kay own Speedy Packages, a courier service. Both are personally liable for the debts of the business. c. IBC Services does not have separate legal existence apart from the one person who owns it. d. Trent Company is owned by Trent Malone, who is personally liable for the company’s debts. e. Ownership of Zander Company is divided into 1,000 shares of stock. The company pays a business income tax. f. Physio Products does not pay income taxes and has one owner. The owner has unlimited lia-bility for business debt. g. AJ Company pays a business income tax and has two owners. h. Jeffy Auto is a separate legal entity from its owner, but it does not pay a business income tax.

Answer 1

People set up business due to different reasons. The answers are below;

• Micah and Nancy kind of business is Corporation.
• Riley and Kay are in Partnership
• IBC Services are Sole Proprietorship
• Trent Company as owned by Trent Malone is a Sole Proprietorship
• Ownership of Zander Company is a type of Corporation
• Physio Products of one owner is a Sole Proprietorship
• AJ Company that has two owners is a Corporation

What are the kinds of business?

There are found to be 4 main types of business organization in the world today. They are:

• Sole proprietorship
• Partnership
• Corporation
• Limited Liability Company

Conclusively, Business starters or entrepreneurs often consider the type of business structure that best suited their enterprise before making decisions.

Learn more about Kinds of Business from

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