Asked by Jaliyah Henderson on May 17, 2024
Verified
Used by large business
A) Proprietorship
B) Partnership
C) Corporation
D) Limited liability company (LLC)
Corporation
A legal entity owned by shareholders, with rights and liabilities distinct from those of its owners.
Large Business
Generally refers to a corporation or enterprise that operates on a large scale in terms of revenue, employees, or market share, often exceeding the thresholds set for small and medium-sized enterprises.
- Comprehend the fundamental traits and distinctions among various business structures.
Verified Answer
AR
Allied RealEstateMay 21, 2024
Final Answer :
C
Explanation :
Corporations are typically used by large businesses due to their ability to issue stocks and raise capital through public offerings. Proprietorships and partnerships are generally not ideal for large businesses as they offer unlimited personal liability for their owners. While LLCs can be used by large businesses, corporations offer more established legal precedent and structure.
Learning Objectives
- Comprehend the fundamental traits and distinctions among various business structures.