A separation between ownership and management is most likely to occur in a:
A)Sole proprietorship.
B)General partnership.
C)Corporation.
D)Limited liability partnership.

Question

Quizplus · Accepted Answer

The separation between ownership and management is a key characteristic of a corporation. The shareholders own the company and elect a board of directors to make important decisions and hire management to oversee day-to-day operations. This allows for a clear division of labor and decision-making power, reducing the risks of personal liability for shareholders.

A Separation Between Ownership and Management Is Most Likely to Occur