Attempts: Average: 10 9. Forms of business organizations Aa Aa Businesses can be classified into the following forms: a sole proprietorship, a partnership, a corporation, a limited liability company (LLC), 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. Subject to unlimited liability Income is allocated on a pro rata basis Can easily raise large amounts of capital Chartered by a state and is its own entity separate from its owners Taxed at individual level Legal arrangement between two or more people 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 Wilson and his friend Shirley run a carpet cleaning business. They distribute the profits proportionately and file their individual taxes. Jacob started a tutoring website. After a few months, a publishing company filed a lawsuit against his company for copyright infringement. Jacob had to shut down his business and lost all his personal assets in the process. David, Wilson, and Jose own an accounting firm in San Francisco. All share in the profits of the firm proportionately and file taxes at an individual level. According to their agreement, none of the owners will be held personally liable for the accounting firm's debt. David, the CEO of a beverage company, is required to certify the accuracy of information provided in the company's quarterly reports. Type of Business