Alicia and Geraldo operate a large company that includes multiple shareholders who require regular reporting. What form of business ownership have they established for their company? (1 point) Responses Corporation Corporation Partnership Partnership Limited liability company Limited liability company Sole proprietorship
Corporation
Based on the given information, Alicia and Geraldo have established a Corporation for their company.
To determine the form of business ownership established by Alicia and Geraldo for their company, we need to understand the characteristics of each option.
1. Corporation: A corporation is a legal entity that is separate from its owners. It is formed by filing articles of incorporation with the state. Corporations issue shares of stock to shareholders, who then become owners of the company. Shareholders elect a board of directors that manages the company's affairs.
2. Partnership: A partnership is a business relationship in which two or more individuals (partners) agree to share profits, losses, and management responsibilities. Partnerships can be general partnerships, limited partnerships, or limited liability partnerships (LLPs).
3. Limited Liability Company (LLC): An LLC is a hybrid business entity that offers limited liability protection to its owners, known as members. Like a corporation, an LLC is a separate legal entity, but the owners have more flexibility in management and taxation options.
4. Sole Proprietorship: A sole proprietorship is a business owned and operated by a single individual. The owner has complete control and is personally liable for all business debts and obligations.
Based on the given information, Alicia and Geraldo's company likely falls under the form of a corporation or a limited liability company (LLC). Both of these forms allow for multiple shareholders and the requirement for regular reporting.
To determine the correct answer, we need more information about the specific characteristics and legal structure of their company.