5
QuizMultiple Choice

Legal Forms of Business Ownership

Question 5 • Entrepreneurship I - CMSD

If shares of stock can be issued, then the form of business ownership is called a _____.

Answer
A
sole proprietorship
B
limited liability company
C
corporation
D
partnership

Explanation

A corporation can raise money by issuing shares of stock to investors, who become shareholders. A sole proprietorship and a partnership are owned directly by individuals or partners, and an LLC does not issue corporate stock in the usual sense. Therefore, the answer is corporation.

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