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2. Forms of business organizations Businesses can be classified into the following forms: a 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. Income is allocated on a pro rata basis can easily raise large amounts of capital Chartered by a province and is its own entity separate from its owners Subject to unlimited liability Legal arrangement between two or more people Taxed at individual level You come across different kinds of businesses very day. The following table descoes some businesses using the descriction of each classify it as a sole proprietorship, a partnership a corporation or a limited liability companied by partners 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, Type of Business LLC/LLP Corporation Business Scenario Andrew 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 company's annual revenue is around $500,000. Income is distributed among all consultants and each is personally liable for claims if the company goes under. DDX Co. is a shipping company. Caesar owned 1,000 shares of DDx stock. He found better opportunities and sold his entire stake in Dox to another investor Caesar, Rafael, 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. Businesses in the form of corporations offer their owners several advantages, but the benefits come at a price. For instance, corporations are required to create a charter, set byaws and he mandatory reports with province and federal authorities, which can get expensive and time consuming to cater the name of the ROCAS PAGE

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