Which of the following types of business organizations terminates when its ownership structure changes?
A) partnerships and proprietorships
B) partnerships and corporations
C) proprietorships and corporations
D) only corporations

Question

Quizplus · Accepted Answer

In partnerships and proprietorships, the ownership is closely tied to the individuals or partners involved. Therefore, if there is a change in ownership structure, the business organization would typically terminate. Corporations, on the other hand, have a separate legal identity that is distinct from its owners/shareholders, and changes in ownership structure do not necessarily lead to the termination of the corporation.

Which of the Following Types of Business Organizations Terminates When