An Entity That Is Organized According to State or Federal

question 177

Multiple Choice

An entity that is organized according to state or federal statutes and in which ownership is divided into shares of stock is a

• A) proprietorship
• B) corporation
• C) partnership
• D) governmental unit

---

Definitions:

Employment Standards Laws

Regulations that define the rights and responsibilities of employees and employers in the workplace.

Minimum Wage

The lowest legal hourly rate of pay that an employer can compensate workers, set by government law or regulation.

Tips

Discretionary payments given to service providers by customers, typically as a gesture of thanks for good service.

Statute of Frauds

A legal principle that requires certain types of contracts to be written and signed to be enforceable.