A proprietorship is created by:
A) electing a board of directors.
B) obtaining a state charter.
C) issuing shares of stock.
D) one individual deciding to start a business.

Question

Quizplus · Accepted Answer

A proprietorship is an unincorporated business owned and run by one individual. It is the simplest form of business organization and does not require any formal legal processes such as obtaining a state charter, electing a board of directors, or issuing shares of stock. Therefore, only option D - one individual deciding to start a business - is the correct way to create a proprietorship.

A Proprietorship Is Created By