Types Of Business Ownership! Trivia Quiz

Explanation
An LLC is a hybrid of two types of business ownerships: Partnership and Corporation. A partnership is a business owned by two or more individuals who share profits and liabilities. A corporation, on the other hand, is a legal entity separate from its owners, providing limited liability protection. An LLC combines the flexibility and tax benefits of a partnership with the limited liability protection of a corporation, making it an attractive option for many small businesses.

Explanation
A corporation is the type of ownership that has limited liability for its owners. This means that the owners, also known as shareholders, are not personally responsible for the company's debts or legal obligations. In the event of bankruptcy or lawsuits, the shareholders' personal assets are protected, and they can only lose the amount they have invested in the corporation. This limited liability feature makes corporations an attractive option for investors and entrepreneurs looking to protect their personal finances.

Explanation
A sole proprietorship is a type of business entity where the owner is personally liable for all debts and obligations of the business. This means that the owner's personal assets can be used to satisfy business debts. Additionally, the owner has complete control and decision-making authority over the business, making them the boss. They also get to keep most of the profits earned by the business. However, one characteristic that is not true for a sole proprietorship is that the business does not end when the owner dies. In fact, the business is considered to be an extension of the owner, and therefore, it typically ceases to exist upon the owner's death.

Explanation
The explanation for the given correct answer is that the Hawaiian Humane Society provides services for animals "for no profit." This means that they do not aim to make money from their services, but rather their main goal is to provide assistance and support to animals in need. They likely rely on donations, grants, and other forms of funding to cover their expenses and continue their work in helping animals.

Explanation
Nike is not a franchise because it is not a business model that allows individuals to purchase and operate their own Nike store or business. Nike operates its own stores and sells its products through authorized retailers, but it does not offer franchise opportunities like Taco Bell, McDonald's, and Subway do.

Explanation
Florida orange farmers is an example of a cooperative discussed in class because a cooperative is an organization formed by a group of individuals with similar interests or goals, who come together to pool their resources and efforts for mutual benefit. In this case, the Florida orange farmers work together to share resources, knowledge, and marketing strategies, allowing them to collectively improve their production and sales of oranges.

Explanation
A partnership type of business ownership involves multiple individuals pooling their resources and skills to run a business together. "More money" implies that partners contribute their own capital to the business, while "More Skills" suggests that partners bring different expertise and abilities to the table. "Possibility of arguments" acknowledges that disagreements and conflicts can arise between partners due to differing opinions and interests. Limited liability, which is not mentioned in the answer choices, is a characteristic of a corporation rather than a partnership.

Explanation
In a corporation, the company does not die when the owner dies because a corporation is a separate legal entity from its owners. It has its own rights and liabilities, and its existence is not dependent on the life of its owners. Even if the owner or shareholders pass away, the corporation can continue to operate and be transferred to new owners or shareholders. This is one of the advantages of incorporating a business, as it provides continuity and stability even in the event of the owner's death.

Explanation
Having a corporation can have certain disadvantages, or cons. One of these is double taxation, which means that the corporation's profits are taxed at both the corporate level and the individual level when distributed to shareholders as dividends. This can result in a higher overall tax burden for the corporation and its shareholders. Additionally, government regulation is another con of having a corporation. Corporations are subject to various regulations imposed by the government, which can increase compliance costs and restrict certain business activities.