Business 101 Midterm Questions with complete solutions

sole proprietorship Correct Answer-a business owned (and usually managed) by one person. (most common). unlimited liability partnership Correct Answer-2 or more people legally agree to become co-owners corporation Correct Answer-a legal entity with authority to act and have liability apart from its owners general partnership Correct Answer-all owners share in operating the business and in assuming liability for the business's debts limited partnership Correct Answer-has one or more general partners and one or more limited partners master limited partnership (MLP) Correct Answer-a partnership that looks much like a corporation (in that it acts like a corporation and is traded on a stock exchange) but is taxed like a partnership (avoids the corporate income tax) limited liability partnership (LLP) Correct Answer-A partnership that limits partners' risk of losing their personal asse