NABTEB Commerce 2023 Objective — Question 6
Question 6 of 50 from the National Business and Technical Examinations Board (NABTEB) Commerce 2023 Objective paper, with the correct answer and a full explanation.
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A business that obtains capital by selling shares to the public is called a (a) sole proprietorship (b) partnership (c) corporation (d) cooperative
- A. sole proprietorship
- B. partnership
- C. corporationCorrect
- D. cooperative
Explanation
A corporation is a legal entity separate from its owners that raises capital by selling shares of ownership to investors; owners are not personally liable for its debts.
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