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Which of the following is NOT an appropriate legal structure for an entrepreneurial company?

a.
Proprietorship
b.
Corporation
c.
Partnership
d.
Trade alliance
e.
All of these are appropriate legal structures for an entrepreneurial company.

1 Answer

3 votes

Final answer:

A trade alliance is not a legal structure for an entrepreneurial company; it refers to a partnership between organizations. Proprietorship, corporation, and partnership are proper legal structures for a business. The correct answer to the question is 'd. Trade alliance'.

Step-by-step explanation:

When choosing a legal structure for an entrepreneurial company, there are several forms to consider. These include sole proprietorship, partnership, and corporation. A sole proprietorship is an individual-owned business, while a partnership involves two or more individuals co-owning a business. A corporation is a more complex structure involving shareholders. Each of these forms has its own legal implications and tax considerations.

The term trade alliance, however, generally refers to a collaboration between businesses or organizations to advance shared interests or engage in joint trade practices, rather than a specific legal structure for operating a business itself. Therefore, among the given options, a trade alliance is NOT an appropriate legal structure for an entrepreneurial company.

To summarize, the appropriate legal structures for an entrepreneurial company are a proprietorship, partnership, and corporation. Option 'd' Trade alliance is not a legal structure for a business but rather a collaboration strategy among businesses.

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