Asked by Radiate Waldemariam on May 18, 2024
Verified
A legal entity formed by issuing stock to investors is a ________.
A) cooperative
B) corporation
C) limited partnership
D) limited liability partnership
E) general partnership
Legal Entity
An organization or structure that has legal rights and obligations, including the ability to enter into contracts, sue, and be sued.
Issuing Stock
The process by which a company distributes shares to investors, thereby raising capital in exchange for ownership interests in the company.
Investors
Persons or organizations that invest money anticipating financial gains in return.
- Recognize the varied classifications of business organizations and their unique attributes.
Verified Answer
MN
Moosa Nayeem MohammedMay 21, 2024
Final Answer :
B
Explanation :
A corporation is a legal entity formed by issuing stock to investors.
Learning Objectives
- Recognize the varied classifications of business organizations and their unique attributes.