Multiple Choice
Which of the following is NOT one of the three main forms of legal ownership of a business?
22
views
1. Introduction to Accounting
Business Organization
Struggling with Financial Accounting?
Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which type of business organization is Strong Steel Manufacturers most likely to be classified as?
A
Sole Proprietorship
B
Partnership
C
Nonprofit Organization
D
Corporation
Verified step by step guidance1
Understand the characteristics of each type of business organization: Sole Proprietorship, Partnership, Nonprofit Organization, and Corporation.
A Sole Proprietorship is owned and operated by one individual, with no legal distinction between the owner and the business. This is unlikely for a large manufacturing company like Strong Steel Manufacturers.
A Partnership involves two or more individuals sharing ownership and responsibilities. While partnerships can be large, they are less common for large-scale manufacturing businesses.
A Nonprofit Organization operates to serve a public or social benefit rather than to generate profit. Manufacturing companies like Strong Steel Manufacturers typically aim to generate profit, so this classification is unlikely.
A Corporation is a legal entity that is separate from its owners, often used for large businesses. Corporations can raise capital through stock issuance and are common for large-scale manufacturing companies like Strong Steel Manufacturers. Based on this, Strong Steel Manufacturers is most likely classified as a Corporation.
Related Videos
Related Practice
Business Organization practice set
Problem sets built by lead tutorsExpert video explanations