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, your answers are correct!
To determine whether the description refers to a sole proprietorship, partnership, or corporation, you need to consider the key features of each type of business entity.
For the first description, Jo Chen & Al Fitch own a financial services provider, and neither of them has personal responsibility for the debts of the business. In this case, the correct answer is a corporation. Corporations are separate legal entities from their owners, and the owners' personal assets are generally protected from the business's liabilities.
For the second description, Tampa Biz pays its own income taxes and has two owners. The fact that there are two owners indicates that it is not a sole proprietorship. Additionally, the mention of paying income taxes suggests that the business is not a corporation where the taxes would be paid at the corporate level. Therefore, the correct answer is a partnership. Partnerships are business entities where the income and losses from the business flow through to the owners, who then pay taxes on their share of the profits.
In summary, your answers are correct: 1. Corporation, and 2. Partnership.