I need to ask some opinion about this question.
determine whether the description refers to solo proprietorship, partnership or corporation.
1. Jo Chen & Al Fitch own Financial services provider. Neither Chen nor Fitch has personal responsibility for the debts of Financial Services.
2. Tampa Biz pays its own income taxes and has 2 owners.
my answer for 1. corporation bcus both of them do not have the responsibility for the libilities. 2. partnership bcus it has 2 owners. I'm I right?
Yes, you are correct.
To determine whether the description refers to a sole proprietorship, partnership, or corporation, you can consider the specific characteristics mentioned in each description.
In the first description, it states that Jo Chen & Al Fitch own a financial services provider, and neither Chen nor Fitch has personal responsibility for the debts of Financial Services. This indicates that the business entity is separate from its owners, which aligns with the characteristic of a corporation. Therefore, your answer of "corporation" is correct.
In the second description, it states that Tampa Biz pays its own income taxes and has two owners. This indicates a business structure where the income taxes are paid by the business itself, which aligns with a partnership. Additionally, the fact that there are two owners further supports the idea of a partnership. Therefore, your answer of "partnership" is also correct.
Overall, your understanding and identification of the business structures are accurate based on the provided descriptions.