Question

Jim Delaney sold his pizza firm to an investor who then sold stock to the public. Jim now earns a salary of $5,000 a month and all the profits are distributed to the stockholders. This firm is an example of a:________

1. corporation.
2. sole proprietorship.
3. nonprofit corporation.
4. partnership because Jim Delaney partnered with an investor.

Answer 1

Answer: Corporation

Step-by-step explanation:

Corporation is a form of business operation whereby the business is declared as a separate, legal entity which is guided by a group of officers that are called the board of directors. A corporation typically exists as a separate entity as it is separate from the owners of the business

corporations are their own legal owners control through the shares they have in the company. When incorporating, you will have the opportunity to state how many shares you own as the register of the corporation.

Corporations results in individuals working together to generate a profit and corporations, are also given additional benefits by the state.