There Are Two Basic Classes of Ownership in Companies: Shares

question 50

Short Answer

There are two basic classes of ownership in companies: shares of stock in publicly traded companies and ________________ equity, in which the founders either own common stock, or participate as members in a partnership or in an LLC.

---

Definitions:

Impostor

An individual who deceives others by assuming a false identity or title, often to gain certain advantages, access, or to commit fraud.

Primarily Liable

Refers to the party that is first and foremost responsible for fulfilling an obligation or making restitution.

Negotiable Instrument

A written document guaranteeing the payment of a specific amount of money either on demand or at a set time, with the payer named on the document.

Agreed

The state of mutual consent or acknowledgement about terms, conditions, or proceedings by all parties involved.