Asked by Kelly Walter on May 25, 2024
Verified
Which of the following is true of a joint stock company?
A) It is a mixture of a corporation and a partnership.
B) It is a mixture of a corporation and a joint venture.
C) It is a mixture of a partnership and a sole proprietorship.
D) It is a mixture of a limited liability company and a sole proprietorship.
E) It is a mixture of a limited liability company and a joint venture.
Joint Stock Company
A business entity where ownership is shared through the issuance of shares, allowing for the capital to be collectively raised by shareholders.
Corporation
A legal entity that is separate and distinct from its owners, which can own property, incur debt, sue and be sued.
Partnership
A business structure in which two or more individuals manage and operate a business in accordance with the terms and objectives set out in a partnership agreement.
- Apprehend the basic notions and divergences among several business configurations, including sole proprietorship, partnership, limited partnership, corporation, and LLC.
Verified Answer
SW
Sareena WaskowiakMay 26, 2024
Final Answer :
A
Explanation :
A joint stock company is a mixture of a corporation and a partnership.As with the corporation,the members who hold shares of stock own the joint stock company.As with the partnership,the shareholders have personal liability,and in most cases the company is not a separate legal entity.
Learning Objectives
- Apprehend the basic notions and divergences among several business configurations, including sole proprietorship, partnership, limited partnership, corporation, and LLC.