Healthcare finance chapter 2
Questions with complete solution
2025/2026
proprietorship - correct answer ✔A business owned by one person
Partnership - correct answer ✔A business owned by two or more people.
corporation - correct answer ✔A business organized as a separate legal entity having ownership
divided into transferable shares of stock.
investment liquidity - correct answer ✔the ability to buy or sell an investment quickly without
substantially affecting its value
limited partnership - correct answer ✔A business organization that has at least one general partner,
who assumes unlimited liability, and at least one limited partner, whose liability is limited to his or her
investment in the business.
limited liability partnership - correct answer ✔A form of partnership that allows professionals to enjoy
the tax benefits of a partnership while limiting their personal liability for the malpractice of other
partners.
limited liability company - correct answer ✔A new form of business ownership that combines the
aspects of partnerships with the limited liability of a corporation; owners are known as members.
professional corporation - correct answer ✔a type of corporate business organization in with
owners/managers still have professional (medical) liability. called a professional association in some
states.
Questions with complete solution
2025/2026
proprietorship - correct answer ✔A business owned by one person
Partnership - correct answer ✔A business owned by two or more people.
corporation - correct answer ✔A business organized as a separate legal entity having ownership
divided into transferable shares of stock.
investment liquidity - correct answer ✔the ability to buy or sell an investment quickly without
substantially affecting its value
limited partnership - correct answer ✔A business organization that has at least one general partner,
who assumes unlimited liability, and at least one limited partner, whose liability is limited to his or her
investment in the business.
limited liability partnership - correct answer ✔A form of partnership that allows professionals to enjoy
the tax benefits of a partnership while limiting their personal liability for the malpractice of other
partners.
limited liability company - correct answer ✔A new form of business ownership that combines the
aspects of partnerships with the limited liability of a corporation; owners are known as members.
professional corporation - correct answer ✔a type of corporate business organization in with
owners/managers still have professional (medical) liability. called a professional association in some
states.
