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 Sole proprietorship
The form of business ownership that Alicia and Geraldo have established for their company is a corporation.
Based on the provided information, Alicia and Geraldo have established a corporation for their company.
In order to determine the form of business ownership established by Alicia and Geraldo for their company, we need to understand the characteristics of each option mentioned.
1. Corporation: This form of ownership is characterized by the company being a separate legal entity from its owners (shareholders). The shareholders have limited liability, meaning they are not personally responsible for the company's debts and obligations. Regular reporting to shareholders is common in corporations.
2. Partnership: This form of ownership involves two or more individuals (partners) who agree to share the profits and losses of the company. Each partner has a personal liability for the company's debts and obligations.
3. Limited Liability Company (LLC): An LLC combines characteristics of both a corporation and a partnership. It provides limited liability to its owners (referred to as members) and offers flexibility in terms of management and taxation.
4. Sole Proprietorship: This is the simplest form of business ownership where an individual owns and operates the business. The owner has unlimited liability, meaning their personal assets can be used to cover the company's debts and obligations.
Based on the information provided, Alicia and Geraldo operate a large company with multiple shareholders who require regular reporting. This suggests that they have established a Corporation as their form of business ownership. In a corporation, shareholders are entitled to regular reports to stay informed about the company's performance.