The Owners of Which Type of Firm Have the Least

question 45

Multiple Choice

The owners of which type of firm have the least liability?

• A)Corporation.
• B)Partnership.
• C)Proprietorship.

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Definitions:

Legal Taxable Entity

An organization or individual that is recognized by law as a separate legal entity for tax purposes.

Shares Of Stock

Representations of ownership in a corporation, each of which entitles the shareholder to a fraction of the company's assets and profits, depending on the amount of shares owned.

Corporation

A legal entity separate from its shareholders, with its own rights, privileges, and liabilities.

Business Entity

An organization established as a separate legal entity for business purposes, which may include corporations, partnerships, and sole proprietorships.