Question

For a business to be considered a corporation:

Multiple Choice

A) its stock must be sold in very large amounts.

B) it must be organized as a separate legal entity.

C) it must issue both common and preferred stock.

D) it must pay dividends.

Answer 1

A corporation is a business owned by shareholders and organized as a separate legal entity. It may have publicly traded stock and can raise funds by selling stock or issuing bonds. Corporations are considered legal entities with rights and responsibilities.

Step-by-step explanation:

A corporation is a business that is owned by shareholders and organized as a separate legal entity. It may be private or public, and may or may not have publicly traded stock. Corporations can raise funds by selling stock or issuing bonds. The main strength of a corporation is that it is considered a legal entity with all the rights and responsibilities of an individual.