A separation between ownership and management is most likely to occur in a


A separation between ownership and management is most likely to occur in a: Select one: a. limited liability partnership b. c

Answer

A separation between ownership and management is most likely to occur in a:

Thr answer is option B) Corporation

Explanation:

In a corporation, the owners (or more commonly known as the share holders) tend to higher the executive that they believe is capable to manage the company.

This structure permits ownership through stock purchase which is entirely distinct from any authority to manage or control the ongoing operations of the corporate entity.

By contrast, a sole proprietorship is owned entirely by one person. A general partnership is defined as “an association of two or more persons for the purpose of carrying on a business for profit.” So, the partners are intimately involved in ongoing management. Finally, a limited liability parntership is simply a general partnership, with the provision that individual partners are released from the ordinary joint and several liability for their partner acts and omissions.

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