Attempts: Average 2 4. Forms of business organizations Businesses can be classified into the following forms sole proprietorship, partnersho, corporation, limited liability company LLC) and limited liability partnershop (LLP) Different forms of businesses have different charactensties. Which of the following characterisbes would apply to partnership of all the Income is allocated on a pro rata basi Legal arrangement between two or more people can easily raise large amounts of capital Subject to unlimited personal liability Chartered by a state and is its own legal entrenate and distinct from sowners and managers Taxed at individual level You come across aferent kinds of businesses every day. The following table describes some busness in the desconton of each business, classify it as a sole proprietorship, Darthes, corporation, or limited ability company/limited bobilky partnership Type of Business Business Scenario Andrere founded and operated a wedding planning agency, which specialized in Celebrity weddings, when he died, is business was dissolved boose there was no plan for control after his death, Purple Consulting has five consultants in the form. The company's annual revenue is around $500,000. Income is distributed among al consultants, and each personally lable for claims if the company goes under DOX Co. is a shipping company. Caesar owned 1,000 shares of DOX stock. He found better opportunities and sold his eye stoke in DDX to another investor Caesa, Rafael, and Jose own an counting firm in San Francico. All share in the profits of the firm proportionately and file taxes at an invidual level. According to their agreement, none of the owners will be held personalable for the accounting firm's debt Grade It Now Save & Continue