Question

2
drag the tiles to the correct boxes to complete the pairs.
match each business structure with its description.
sole proprietorship partnership corporation
limited liability corporation
the business owners personal assets are protected from liabilities, but the
business is not a separate tax entity.
a single individual is personally responsible for all liabilities incurred by the
business.
one business owner may contribute less time and effort than the other, leading
to disputes and bitterness.
the business structure is strictly regulated by the government, requires an
overwhelming amount of paperwork, and involves high start - up costs.

Explanation:

• Limited Liability Corporation (LLC): In an LLC, owners (members) have limited liability (personal assets protected), and it often has pass - through taxation (not a separate tax entity like a C - corporation).
• Sole Proprietorship: A sole proprietorship is owned by one individual who has unlimited personal liability for business debts.
• Partnership: In a partnership, if there is an unequal contribution of time and effort among partners, it can lead to disputes.
• Corporation: Corporations are highly regulated by the government, require a lot of paperwork (e.g., articles of incorporation, annual reports), and have high start - up costs (e.g., legal fees for incorporation).

Answer:

• "The business owners' personal assets are protected from liabilities, but the business is not a separate tax entity." → limited liability corporation
• "A single individual is personally responsible for all liabilities incurred by the business." → sole proprietorship
• "One business owner may contribute less time and effort than the other, leading to disputes and bitterness." → partnership
• "The business structure is strictly regulated by the government, requires an overwhelming amount of paperwork, and involves high start - up costs." → corporation