Which type of business is the easiest to form in a limited


1. Which type of business is the easiest to form?

A. Limited partnership

B. Limited liability company

C. General partnership

D. Corporation

E. Sole proprietorship

2. In a limited partnership:

A. each limited partner's liability is limited to his net worth.

B. each limited partner's liability is limited to his annual salary.

C. each limited partner's liability is limited to the amount he/she invested.

D. there is no limitation on liability; only a limitation on what the partner can earn.

E. limitations are placed on both the salary and personal liability of each limited partner.

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Financial Management: Which type of business is the easiest to form in a limited
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