4. Forms of business organizations Businesses can be classified into the following forms: sole proprietorship, partnership, corporation, limited liability company (LLC), and limited liability partnership (LLP). Different forms of businesses have different characteristics. Which of the following characteristics would apply to a partnership? Check all that apply. Chartered by a state and is its own legal entity separate and distinct from its owners and managers Subject to unlimited personal liability Can easily raise large amounts of capital Taxed at individual level Legal arrangement between two or more people Income is allocated on a pro rata basis You come across different kinds of businesses every day. The following table describes some businesses. Using the description of each business, classify it as a sole proprietorship, a partnership, a corporation, or a limited liability company/limited liability partnership. Business Scenario Type of Business William founded and operated a wedding planning agency, which specialized in celebrity weddings. When he died, his business was dissolved because there was no plan for control after his death. Purple Consulting has five consultants in the firm. The companys annual revenue is around $500,000. Income is distributed among all consultants, and each is personally liable for claims if the company goes under. Sabastian, the CEO of a beverage company, is required to certify the accuracy of information provided in the companys quarterly reports. Selena and Mario run a law firm in Chicago. The firm has debt of $100,000, but Selena and Mario will not be held personally liable for the law firms debt