Groups of sole proprietorships or partnerships may agree to work together for their common benefit by forming a corporation,which combines the freedom of sole proprietorships with the financial power of cooperatives.

Question

Quizplus · Accepted Answer

Corporations do not combine the freedom of sole proprietorships with the financial power of cooperatives. Instead, they are distinct legal entities that provide limited liability to their owners (shareholders) and have different structures and regulations compared to sole proprietorships and cooperatives.

Groups of Sole Proprietorships or Partnerships May Agree to Work