Asked by Brooklyn Rutledge on Jun 30, 2024
Verified
Which of the following forms of business ownership has the following advantages: limited liability, increased access to resources, and easy transfer of ownership?
A) sole proprietorship
B) partnership
C) corporation
D) joint venture
Limited Liability
A legal status where an individual's financial risk is restricted to a fixed amount, typically the value of their investment in a company, protecting personal assets from business debts.
Corporation
A legal entity recognized by law as separate from its owners, with its own rights, responsibilities, and liabilities.
- Understand the advantages of corporation ownership, including limited liability, increased access to resources, and easy transfer of ownership.
Verified Answer
ML
Modline LemorinJul 07, 2024
Final Answer :
C
Explanation :
Corporations offer limited liability to their owners (shareholders), making it easier to attract investment due to increased access to resources. Additionally, the ownership in a corporation can be easily transferred through the sale of stock.
Learning Objectives
- Understand the advantages of corporation ownership, including limited liability, increased access to resources, and easy transfer of ownership.