Which of the following statements about business forms is correct?
A) A sole proprietorship is an unincorporated business owned by one person.
B) All partnerships are owned by two people.
C) A corporation is not a legal entity.
D) An LLC (or limited liability company) has the same tax treatment as a corporation.

Question

Quizplus · Accepted Answer

A sole proprietorship is a business owned by one person and is not incorporated.

Answer: None of the above.
 Both options B and C are incorrect. Partnerships can be owned by more than two people, and a corporation is a legal entity. D is also incorrect as LLCs have different tax treatment than corporations.

Which of the Following Statements About Business Forms Is Correct