Pre-Assignment Review

Here are the answers to the pre-assignment. The jurisdiction where you do business might use different terms to the ones we have below, but they will have similar terms and meanings.

Sole Proprietorship

An individual establishes and runs a business where they make all business decisions, and are responsible for providing a product or service(s).

Partnership (General)

Two or more people decide to work together and share the profits as well as the risks associated with running their company.

Partnership (Limited)

Two or more people decide to work together. Certain partners accept more risk than others.

Corporation

The owner of a business decides to create an entity that is separate from their own self. That business has the status of an entity. It can enter into contracts, pays tax, and files taxes separate from the people who own the business.