A Corporation Run by a Team of Managers with Functional

question 31

Multiple Choice

A corporation run by a team of managers with functional specializations and which successfully operates in one industry is said to be a

• A) Stage I company.
• B) Stage II company.
• C) Stage III company.
• D) Stage IV company.
• E) Stage V company.

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Definitions:

Agency

A legal relationship in which one party (the agent) acts on behalf of another party (the principal) in dealing with third parties.

Limited Liability Partnership

A limited liability partnership (LLP) is a legal entity where partners have limited liabilities, protecting their personal assets from business debts and obligations.

Partnership Agreement

A formal arrangement between two or more parties to manage and operate a business and share its profits.

Secretary of the State

A high-ranking official typically responsible for keeping public records, administering elections, and managing the affairs of the state government.