FSE2202-1.2 EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS VERIFIED
Sole Proprietorship
A legal form of organization whereby the business is owned and operated by one
person.
Partnership
The voluntary association of two or more people who have combined their resources to
carry on as co-owners of a lawful enterprise for their joint profit.
Corporation
An artificial being, invisible, intangible, and existing only in contemplation of law; an
entity that is something that has a distinct existence separate and apart from the
existence of its individual members.
Corporation Charter
The written application for permission to incorporate that is approved by a state official.
Legal Entity
A business organization that is recognized by the law as having a separate legal
existence.
Board of Directors
The governing body that is elected by the stockholders of a corporation.
Stock or Stock Certificate
A document specifying the number of shares owned by a stockholder.
COMPLETE SOLUTIONS VERIFIED
Sole Proprietorship
A legal form of organization whereby the business is owned and operated by one
person.
Partnership
The voluntary association of two or more people who have combined their resources to
carry on as co-owners of a lawful enterprise for their joint profit.
Corporation
An artificial being, invisible, intangible, and existing only in contemplation of law; an
entity that is something that has a distinct existence separate and apart from the
existence of its individual members.
Corporation Charter
The written application for permission to incorporate that is approved by a state official.
Legal Entity
A business organization that is recognized by the law as having a separate legal
existence.
Board of Directors
The governing body that is elected by the stockholders of a corporation.
Stock or Stock Certificate
A document specifying the number of shares owned by a stockholder.
