INDUSTRIAL REVOLUTION
PRE INDUSTRIAL EUROPE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
cartel
|
|
|
company
|
|
|
corporation
|
|
|
partnership
|
Detailed explanation-1: -A business organized as a separate legal entity owned by stockholders is a corporation.
Detailed explanation-2: -A corporation is a legal entity that’s separate from the parties who own it, the shareholders who invest by buying shares of stock. Corporations are governed by a Board of Directors, elected by the shareholders. Advantages include: limited liability, easier access to financing, and unlimited life for the corporation.
Detailed explanation-3: -Individuals may become shareholders by buying common stock in corporations through brokers or directly from the company (if they offer a direct investment plan).
Detailed explanation-4: - Shareholders: Owners of the corporation in proportion to their ownership of corporate stock outstanding. These people may be the same (ie., a director, officer and shareholder), but usually not.