Management and ownership of business are separate
A) Sole Proprietorship
B) Corporation
C) Partnership
I said a
Based on the given options, you said "A) Sole Proprietorship." However, that answer is incorrect.
The correct answer is "B) Corporation."
In a corporation, the management and ownership of the business are separate. The owners, also known as shareholders, are not directly involved in the day-to-day operations and management of the company. Instead, the shareholders elect a board of directors who are responsible for making decisions and overseeing the company's operations.
This separation of management and ownership allows corporations to have a more flexible structure and enables the shareholders to limit their liability. It also provides a clear distinction between the individuals who own the business and those who are responsible for running it.