How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask socrateaser Your Own Question
socrateaser, Attorney
Category: Business Law
Satisfied Customers: 39045
Experience:  Retired (mostly)
Type Your Business Law Question Here...
socrateaser is online now
A new question is answered every 9 seconds

A separation between ownership and management is most likely

This answer was rated:

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.



socrateaser and 2 other Business Law Specialists are ready to help you