Businesses can be classified into the following forms: a proprietorship, a partnership, a corporation, a limited liability company $($LC$),$ and a 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.

Taxed at individual level

Income is allocated on a pro rata basis

Subject to unlimited liability

Can easily raise large amounts of capital

Chartered by a state and is its own entity separate from its owners

Legal arrangement between two or more people