Question

Which of the following business types is owned by the shareholder and formed under legal guidelines?

1) Sole proprietorship
2) Partnership
3) Corporation
4) Limited liability company

Answer 1

A corporation is owned by the shareholder and formed under legal guidelines.

Step-by-step explanation:

The business type that is owned by the shareholder and formed under legal guidelines is a corporation. A corporation is a separate legal entity from its shareholders, who own shares of the company's stock. This form of business provides limited liability protection to its shareholders, which means their personal assets are protected from the debts and liabilities of the corporation.