Question

Which of the following was NOT one of the forms of business organization that arose in the United States during the late 19th Century?

1) Sole Proprietorship
2) Partnership
3) Corporation
4) Limited Liability Company

Answer 1

The Limited Liability Company (LLC) was not a form of business organization during the late 19th century. The common forms then included sole proprietorships, partnerships, and corporations. The LLC is a modern business structure offering limited liability to owners with pass-through taxation.

Step-by-step explanation:

The Limited Liability Company (LLC) was not one of the forms of business organization that arose during the late 19th century in the United States. During that time, the common types of business organizations were sole proprietorships, partnerships, and corporations. The LLC is a relatively newer business structure which combines elements of a corporation's limited liability with the flexibility and tax efficiency of a partnership. It was allowed by state statute well after the 19th century.

Sole proprietorships are entities run by one individual who is entitled to all profits but also responsible for all debts and liabilities. Partnerships involve two or more individuals sharing the responsibilities and profits. Corporations are formal legal entities that are separate from their founders and can raise capital by selling shares to the public. Unlike these three forms, the LLC is designed to provide business owners with limited liability while allowing the profits to pass through directly to the owners without first being taxed at the corporate level.