BUSINESS ADMINISTRATION
BUSINESS LAW
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Joint Stock Company
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Partnerships
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Private Enterprise
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All 3 statements above are wrong
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Detailed explanation-1: -No legal formalities are required to create a sole proprietorship other than an appropriate licensing to conduct a business and registration of business name if it differs from that sole proprietorship.
Detailed explanation-2: -Sole Proprietorship of the following business enterprise does not have a separate legal entity. One way to describe a sole proprietorship’s legal standing is as follows: The firm owner is its only legal representative.
Detailed explanation-3: -A sole proprietorship is not a distinct legal entity. The single proprietorship business is run by one individual, who is also the owner of the firm.
Detailed explanation-4: -There are four main types of private companies: sole proprietorships, limited liability corporations (LLCs), S corporations (S-corps) and C corporations (C-corps)-all of which have different rules for shareholders, members, and taxation.