Question

determine whether each description best refers to a sole proprietorship, partnership, corporation, or limited liability company (llc).
description\tbusiness organization
a. lannister owns wealth management. the business is a separate legal entity and pays an additional business income tax.

b. riley and kay own speedy packages, a courier service. both are personally liable for the debts of the business.

c. ownership of zander company is divided into 1,000 shares of stock. the company pays a business income tax.

d. russell is the sole owner of wilson sports. the business is not a separate legal entity from russell and the business ends with his death.

e. trent company is owned by trent malone, who is personally liable for the company’s debts.

f. micah and nancy own financial services, which pays a business income tax. micah and nancy do not have personal responsibility for the debts of financial services.

g. vera is the sole owner of tech solutions. the business is a separate legal entity and does not pay an additional business income tax.

h. ibc services does not have separate legal existence apart from the one person who owns it.

options for business organization (dropdown includes): corporation, limited liability company, partnership, sole proprietorship

Explanation:

To solve this, we analyze each description based on the characteristics of sole proprietorship, partnership, corporation, and LLC:

Part a

• A corporation is a separate legal entity and pays corporate income tax (additional business income tax).
• So, Lannister’s Wealth Management (separate legal entity, pays additional business income tax) is a Corporation.

Part b

• A partnership involves multiple owners (Riley and Kay) who are personally liable for business debts.
• So, Speedy Packages (two owners, personal liability) is a Partnership.

Part c

• A corporation has ownership divided into shares of stock and pays corporate income tax.
• Zander Company (1,000 shares of stock, pays business income tax) is a Corporation.

Part d

• A sole proprietorship has one owner, is not a separate legal entity, and the business ends with the owner’s death.
• Wilson Sports (Russell is sole owner, not separate legal entity, ends with his death) is a Sole proprietorship.

Part e

• A sole proprietorship has one owner who is personally liable for business debts.
• Trent Company (Trent Malone is sole owner, personal liability) is a Sole proprietorship.

Part f

• A limited liability company (LLC) has multiple owners, pays business income tax, and owners have limited liability (no personal responsibility for debts).
• Financial Services (Micah and Nancy own it, pays business income tax, no personal debt responsibility) is a Limited liability company (LLC).

Part g

• A limited liability company (LLC) can have one owner, is a separate legal entity, and does not pay corporate income tax (no additional business income tax for LLCs in this context).
• Tech Solutions (Vera is sole owner, separate legal entity, no additional business income tax) is a Limited liability company (LLC).

Part h

• A sole proprietorship does not have a separate legal existence from its owner.
• IBC Services (no separate legal existence, one owner) is a Sole proprietorship.

Final Answers (filled in the table):

Description	Business Organization
b. Riley and Kay own Speedy Packages...	Partnership
c. Ownership of Zander Company...	Corporation
d. Russell is the sole owner of Wilson Sports...	Sole proprietorship
e. Trent Company is owned by Trent Malone...	Sole proprietorship
f. Micah and Nancy own Financial Services...	Limited liability company
g. Vera is the sole owner of Tech Solutions...	Limited liability company
h. IBC Services does not have separate legal existence...	Sole proprietorship

(If you need the answers in the format of just the business organization for each part:
a. Corporation
b. Partnership
c. Corporation
d. Sole proprietorship
e. Sole proprietorship
f. Limited liability company
g. Limited liability company
h. Sole proprietorship)

Answer:

To solve this, we analyze each description based on the characteristics of sole proprietorship, partnership, corporation, and LLC:

Part a

• A corporation is a separate legal entity and pays corporate income tax (additional business income tax).
• So, Lannister’s Wealth Management (separate legal entity, pays additional business income tax) is a Corporation.

Part b

• A partnership involves multiple owners (Riley and Kay) who are personally liable for business debts.
• So, Speedy Packages (two owners, personal liability) is a Partnership.

Part c

• A corporation has ownership divided into shares of stock and pays corporate income tax.
• Zander Company (1,000 shares of stock, pays business income tax) is a Corporation.

Part d

• A sole proprietorship has one owner, is not a separate legal entity, and the business ends with the owner’s death.
• Wilson Sports (Russell is sole owner, not separate legal entity, ends with his death) is a Sole proprietorship.

Part e

• A sole proprietorship has one owner who is personally liable for business debts.
• Trent Company (Trent Malone is sole owner, personal liability) is a Sole proprietorship.

Part f

• A limited liability company (LLC) has multiple owners, pays business income tax, and owners have limited liability (no personal responsibility for debts).
• Financial Services (Micah and Nancy own it, pays business income tax, no personal debt responsibility) is a Limited liability company (LLC).

Part g

• A limited liability company (LLC) can have one owner, is a separate legal entity, and does not pay corporate income tax (no additional business income tax for LLCs in this context).
• Tech Solutions (Vera is sole owner, separate legal entity, no additional business income tax) is a Limited liability company (LLC).

Part h

• A sole proprietorship does not have a separate legal existence from its owner.
• IBC Services (no separate legal existence, one owner) is a Sole proprietorship.

Final Answers (filled in the table):

Description	Business Organization
b. Riley and Kay own Speedy Packages...	Partnership
c. Ownership of Zander Company...	Corporation
d. Russell is the sole owner of Wilson Sports...	Sole proprietorship
e. Trent Company is owned by Trent Malone...	Sole proprietorship
f. Micah and Nancy own Financial Services...	Limited liability company
g. Vera is the sole owner of Tech Solutions...	Limited liability company
h. IBC Services does not have separate legal existence...	Sole proprietorship

(If you need the answers in the format of just the business organization for each part:
a. Corporation
b. Partnership
c. Corporation
d. Sole proprietorship
e. Sole proprietorship
f. Limited liability company
g. Limited liability company
h. Sole proprietorship)