Which of the following business types is owned by the shareholders and formed under legal guidelines? A. Cooperative B. Sole proprietorship C. Corporation D. Franchise
Question & Answer
Business owned by shareholders
1 Answer
Verified archiveThe correct answer is C. Corporation.
A corporation is a type of business organization that is owned by shareholders and must adhere to specific legal guidelines and regulations. It is treated as a separate legal entity from its owners, which means it can enter contracts, sue or be sued, and is responsible for its debts and obligations. In contrast, a cooperative is owned by its members, a sole proprietorship is owned by a single individual, and a franchise is a business model that allows individuals to operate a business using the name and systems of an established company.
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