Question

______ possess most of the legal rights of individuals and they can issua a stock to...

______ possess most of the legal rights of individuals and they can issua a stock to raise capital?

A)sole proprietors
B)partnerships
C)corporations
D)sole proprietors, partnerships, and corporations
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Answer #1

Solution:

C) Corporations possess most of the legal rights of individuals and they can issue a stock to raise capital.

Many small businesses operate as corporations in the United States, because corporations provide legal rights and protections that many business structures do not. A corporation is an excellent structure by which a business can raise capital. Corporations are owned by their shareholders, who may change over time, and they exist into perpetuity or until dissolved. Companies issue shares and investors purchase those shares for a variety of reasons.

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