Which Business Entity Is Granted a Charter by the State

question 48

Multiple Choice

Which business entity is granted a charter by the state and has its own privileges and liabilities distinct from those of its board of directors or its shareholders?

• A) Corporation
• B) Sole proprietorship
• C) General partnership
• D) Limited partnership

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Definitions:

Necessity

Essential goods or services required for basic living and welfare of individuals.

Luxury

High-quality goods or services that are not essential but are highly desired and associated with wealth or indulgence.

Substitutes

Goods or services that can be used in place of each other to satisfy consumer needs or desires.

Supply Curve

A graph showing the relationship between the price of a good and the amount of it that producers are willing to sell at each price level.