A ________ is a separate entity and in that capacity can borrow from banks,bondholders,preferred stockholders,and common shareholders.
A)limited partnership
B)sole proprietorship
C)government organization
D)public company

Question

Quizplus · Accepted Answer

A public company is a separate legal entity that is able to raise capital by borrowing funds from banks, issuing bonds, and selling preferred and common shares. This is in contrast to a sole proprietorship, which is not a separate legal entity and does not have the ability to issue securities or borrow funds in the same way. Limited partnerships and government organizations also have limitations on their ability to raise capital.

A ________ Is a Separate Entity and in That Capacity