Question

Identify the type of business ownership based on the following description:
It is a separate entity from its owners and may employ its owners. Owners have limited liability and pay
separate tax for the business.
2.
It is a business owned by two or more people who share the profits of the business among themselves and
bear the losses together.​

Answer 1

Answer:

A sole proprietorship is easy to form and gives you complete control of your business. You're automatically considered to be a sole proprietorship if you do business activities but don't register as any other kind of business.

Answer 2

Answer:

1. Company
2. CompanyPartnership Firm.

Explanation:

1. A Company is an association of people with a separate legal entity. The owners are treated as paid employee as per the book of Accounts. Company members share a common interest and are united to achieve a common goal.
2. A Partnership Firm is a business owner by atleast two or more members who share the profits as well the losses among themselves. Registration of a Partnership Firm is not mandatory but is always advised to get itself registered. The partners involved are bound by a contract either verbal or written.