A business
A)Can only have one legal form of organization.
B)Is one or more individuals selling products or services for profit.
C)Can have adequate financial records without a formal accounting system.
D)Is one or more individuals selling products or services for profit and has to issue shares before it opens.
E)Has to issue shares before it opens.

Question

Quizplus · Accepted Answer

A business can have various legal forms of organization such as sole proprietorship, partnership, limited liability company, corporation, etc. Therefore, option A is incorrect. Option C is also incorrect because having a formal accounting system is necessary for a business to maintain accurate and organized financial records. Option D and E are incorrect because issuing shares is only necessary for corporations and not all businesses. Option B is correct because a business is defined as one or more individuals engaged in selling products or services for a profit.

A Business