ORGANIZING A BUSINESS IN DIFFERENT WAYS Businesses are structured in different ways to meet different needs. The simplest form. of business is called an individual or sole proprietorship. The proprietor owns all of the property of the business and is responsible for everything. Another kind of business is a partnership. Two or more people go into business together. An agreement is usually needed to decide how much of the partnership each person controls. One kind of partnership is called a limited liability partnership. These have full partners and limited partners. Limited partners may not share as much in the profits, but they also have less responsibility for the business. Doctors, lawyers and accountants often form. partnerships to share their risks and profits. A husband and wife can form. a business partnership together. Partnerships exist only for as long as the owners remain alive. The same is true of individual proprietorships. But corporations are designed to have an unlimited lifetime. A corporation is the most complex kind of business organization. Corporations can sell stock as a way to raise money. Stocks represent shares of ownership in a company. Investors who buy stock can trade their shares or keep them as long as the company is in business. A corporation is recognized as an entity-its own legal being, separate from its owners. A board of directors controls corporate policies. The directors appoint top company officers. The directors might or might not hold shares in the corporation. Corporations can have a few major shareholders, or ownership can be spread among the general public. But not all corporations are traditional businesses that sell stock. Some non-profit groups are also organized as corporations.
1. This passage is mainly about ().
A. why different forms of business run
B. when different forms of business raise money
C. how different forms of business are organized
2. What is usually needed to decide the portion of the partnership each person controls?()
A. A rule.
B. An agreement.
C. A regulation.
3. Who are not included in limited liability partnerships?()
A. Full partners.
B. Limited partners.
C. Unlimited partners.
4. How can corporations raise money?()
A. By selling stock.
B. By buying stock.
C. By holding corporation shares.
5. Who controls corporate policies in a corporation?()
A. Chairman of the board.
B. A board of directors.
C. The owner of the corporation.
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