DDX Co. is a short-haul trucking company. Misha owned 1,000 shares of DDX stock. With research, he found a better investment opportunity and sold his entire holding of DDX to another investor. This an example of: a. proprietorship, b. LLC/LLP, c. corporationd. partnership

Question

Business

Rey Hickman

30 June, 22:41

DDX Co. is a short-haul trucking company. Misha owned 1,000 shares of DDX stock. With research, he found a better investment opportunity and sold his entire holding of DDX to another investor. This an example of: a. proprietorship, b. LLC/LLP, c. corporationd. partnership

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Gilbert · Answer 1

Corporation

Explanation:

The main key to understanding the type of business is the ownership of capital/funding.

In a Sole Proprietorship, the capital is usually provided by an individual who is the owner of the business. Where personal funds are not available, then lending can be done either from friends and family or from financial institutions.

In a Partnership also talks about private ownership, although unlike the sole proprietorship, it is owned and managed by a group of people who bring in expertise and they are the financiers of the business or through lending

The Corporation however, is the key here because it allows public ownership and raising of capital through the sales of shares of stock and since Misha was able to own and sell 1,000 shares of stock. DDX Co. is a Corporation.