Question

A company may be an ____________.

• A. Incorporated company
• B. Unincorporated company
• C. Both (a) and (b)
• D. None of the above

Answer 1

The correct option is C Both (a) and (b)

An incorporated business, or a corporation, is a separate entity from the business owner and has natural rights. Conversely, a business owner and an unincorporated business are the same, and the owner personally bears all results of the business. Unincorporated businesses are usually sole proprietor or partnership companies. The main difference between an incorporated and unincorporated business is the way owners shoulder business activities.