Which of the following specialized forms of business is a benefit characterized as a legal entity with limited liability, an unlimited life span, an elected board of directors, and an administrative staff?

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The question asks us to identify a specialized form of business that features four characteristics: it is a legal entity with limited liability, an unlimited life span, an elected board of directors, and an administrative staff.
Option 1: Partnership. Partnerships generally do not offer limited liability to all partners (unless it's a limited partnership with specific structures), and they typically do not have an unlimited life span independent of the partners. They also often rely on the partners themselves rather than a separate elected board and administrative staff. This makes this choice unlikely given the criteria.
Option 2: Corporation. A corporation is a distinct legal entity separate from its owners, providing limited liability to its shareholders. It typically enjoys an unlimited life span, since the corporation continues beyond the involvement of any single owner. It is governed by an elected board of directors and employs an administrative staff to run daily operations. These features align precisely with the described characteristics.
Option 3: Joint venture. A joint venture is usually a temporary collaboration between two or more parties for a specific project or purpose. It generally does not represent a separate, ongoing legal entity with a perpetual life or an independent administrative structure, which makes it inconsistent with the given description.
Option 4: Cooperative. A cooperative is a member-owned organization that can have a board of directors, and some provide limited liability. However, cooperatives are typically organized around member-owners and may have different governance structures and purposes, and they are not universally defined by an unlimited life span or a standard administrative staff in the same way as corporations. This makes it an imperfect match for all four stated features.
Overall, the combination of a separate legal entity with limited liability, perpetual life, an elected board of directors, and an administrative staff most accurately corresponds to a corporation.

2025SU BSN 100 01 GRADED - Quiz: Chapter04

Which of the following specialized forms of business is a benefit characterized as a legal entity with limited liability, an unlimited life span, an elected board of directors, and an administrative staff?

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