Which Forms of Organization Are Free of Initial Legal Requirements

question 80

Multiple Choice

Which forms of organization are free of initial legal requirements?

• A) Sole proprietorship
• B) General partnership
• C) Corporation
• D) Both A and B

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Definitions:

Government Securities

Financial instruments issued by the government to raise funds from the public, promising to pay back with interest.

Lender of Last Resort

An institution, usually a country's central bank, which offers loans to banks or financial institutions that are struggling to survive in order to prevent systemic failure.

Federal Reserve System

The central banking system of the United States, responsible for setting monetary policy, regulating banks, maintaining financial stability, and providing banking services.

Fractional Reserve System

The fractional reserve system is a banking system in which banks hold reserves that are less than the amount of their customers' deposits, allowing them to lend or invest the remainder to earn interest.