Question

south inlet motors is a company owned by three individuals who share responsibilities, profits, tax obligation, and unlimited personal liability. which type of business structure does this describe?

c-corp
partnership
s-corp
sole proprietorship

Explanation:

Analyze the business characteristics

Using the Business Ownership knowledge point

• Ownership: The company is owned by three individuals.
• Shared elements: They share responsibilities, profits, and tax obligations.
• Liability: The owners have unlimited personal liability.

Evaluate the business structures

Using the Business Ownership knowledge point

• Sole proprietorship: Owned by only one individual.
• Partnership: Owned by two or more people who share profits, losses, and management responsibilities, with unlimited personal liability.
• C-corp / S-corp: Corporations offer limited liability protection to their owners (shareholders).

Determine the correct option

Using the Business Ownership knowledge point

• The description matches a Partnership.

Answer:

• C-corp
• Partnership (Correct answer)
• S-corp
• Sole proprietorship