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socrateaser
socrateaser, Attorney
Category: Business Law
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Experience:  Retired (mostly)
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A separation between ownership and management is most likely

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A separation between ownership and management is most likely to occur in a:
sole proprietorship or general partnership or corporation or limited liability partnership?

The answer is "corporation," because, this structure permits ownership through stock purchase which is entirely distinct from any authority to manage or control the ongoing operations of the corporate entity.

 

By contrast, a sole proprietorship is owned entirely by one person. A general partnership is defined as "an association of two or more persons for the purpose of carrying on a business for profit." So, the partners are intimately involved in ongoing management. Finally, a limited liability parntership is simply a general partnership, with the provision that individual partners are released from the ordinary joint and several liability for their partner acts and omissions.

 

fins.

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