Asked by Yazan Xwedz on May 11, 2024
Verified
A____________ is a business entity in which the shareholders are members of the same profession, purchase the corporation's stock, own the firm, share in the profits and losses of the firm in proportion to the number of shares they own, and have limited personal liability.
A) sole proprietorship
B) partnership
C) professional corporation
D) business corporation
Professional Corporation
A type of business entity authorized by state law that is organized for the purpose of providing professional services, such as legal or medical services.
Shareholders
Individuals or entities that own shares in a corporation, giving them certain rights and interests in the company.
Limited Liability
A legal principle where a person's financial risk in a business is restricted to their investment amount.
- Distinguish between different legal entity forms and their attributes within the framework of legal practices.
Verified Answer
JM
Jasmin MitchellMay 11, 2024
Final Answer :
C
Explanation :
A professional corporation is specifically designed for professionals such as doctors, lawyers, and accountants, allowing them to incorporate their practices. This structure provides them with limited personal liability while enabling them to share profits and losses in proportion to their ownership stake.
Learning Objectives
- Distinguish between different legal entity forms and their attributes within the framework of legal practices.