Under Which of the Following Types of Business Organization Is

question 14

Multiple Choice

Under which of the following types of business organization is the ownership transferable to another person?

• A) Sole proprietorship, general partnership, limited liability company, and corporation.
• B) General partnership, limited liability company, and corporation, but not sole proprietorship.
• C) Limited liability company and corporation, but not sole proprietorship or general partnership.
• D) Corporation, but not sole proprietorship, general partnership, nor limited liability company.
• E) Corporation and general partnership, but not sole proprietorship nor limited liability company.

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Definitions:

Dividend

A payment made by a corporation to its shareholders, usually in the form of cash or stock, from its profits or reserves.

Liquidation Value

Net amount that could be realized by selling the assets of a firm after paying the debt.

Common Share

A type of equity security that represents ownership in a corporation, entitling the holder to a share of the company's profit through dividends and/or capital appreciation.

P/E Ratios

The Price-to-Earnings Ratio, a valuation metric comparing a company's current share price to its per-share earnings, used to evaluate stock price reasonableness.