Three Forms of Business Organization Quick Check

Question

3 of 53 of 5 Items
Question
Corporations, limited partnerships, and limited liability partnerships differ from sole proprietorships and general partnerships in(1 point)
Responses

decision-making.
decision-making.

number of owners.
number of owners.

lifespan.
lifespan.

liability.

Answer 1

Corporations, limited partnerships, and limited liability partnerships differ from sole proprietorships and general partnerships primarily in terms of liability. In corporations and certain types of partnerships, the owners have limited liability, meaning their personal assets are protected from business debts and liabilities. In contrast, sole proprietorships and general partnerships typically expose owners to unlimited personal liability.

So, the correct response is: liability.