What type of business entity is formed when the owners desire to have thousands of owners, raise capital through the sale of stock, has liability protection for its owner, and does not make a special election?

Question

Business

Ellis Savage

31 October, 08:02

What type of business entity is formed when the owners desire to have thousands of owners, raise capital through the sale of stock, has liability protection for its owner, and does not make a special election?

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Answers (1)

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Savanah Mayer · Answer 1

Corporation

Explanation:

Corporation can be defined as a large company that is owned by its shareholders. The shareholders are responsible for electing a board of directors who are in charge of the daily management of the company.

Corporation exists as a separate entity, it can be created by a single shareholder or group of shareholders that join together to achieve a common objective.

Some corporation are formed for the sole aim of making profit, while some are not after making profit.