Three entrepreneurs formed a company over 10 years ago. The business has always operated as an independent legal entity, separate from the people who own it. One of the entrepreneurs had a great deal of involvement in the business and passed away recently. The business will not dissolve as a result of the death. Which type of business entity is this company?

Question

Shyla Mayo

Business

28 July, 06:56

Three entrepreneurs formed a company over 10 years ago. The business has always operated as an independent legal entity, separate from the people who own it. One of the entrepreneurs had a great deal of involvement in the business and passed away recently. The business will not dissolve as a result of the death. Which type of business entity is this company?

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Answers (1)

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Ricardo Gamble · Answer 1

Corporation

Explanation:

This is a corporation since it is separate from business owners. The operations of an organisation are generally controlled by the people who are called shareholders. If one business owner or entrepreneur suddenly dies, it will not affect the operations of the corporation, and the company will stay and operate. In the case of the shareholder, the shares will be transferred to a family member.