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Match the Following Characteristics with the Form of Business Entity

Question 124

Matching

Match the following characteristics with the form of business entity that best describes it. Each may be used more than once.

Premises:
Comprises 70% of business entities in the United States
Generates 90% of business revenues
Owned by two or more individuals
Organized as a separate legal taxable entity
Easy and cheap to organize
Often used as an alternative to a partnership
Used by large businesses
Has the ability to obtain large amounts of resources
Offers tax and legal liability advantages for owners
Responses:
Proprietorship
Partnership
Corporation
Limited liability company (LLC)

Correct Answer:

Comprises 70% of business entities in the United States
Generates 90% of business revenues
Owned by two or more individuals
Organized as a separate legal taxable entity
Easy and cheap to organize
Often used as an alternative to a partnership
Used by large businesses
Has the ability to obtain large amounts of resources
Offers tax and legal liability advantages for owners
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