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Briefly define the terms proprietorship, partnership, and corporation.
Ans: The term proprietorship is used as a business owned by one person.
Two or more than two people who join together to form a business build up a partnership. This can be done on an informal basis with no a written partnership agreement, or a contract can spell out the rights and tasks of each partner.
A limited liability company is a hybrid among a corporation and a partnership. Profits and losses pass by to the members. Members usually enjoy limited liability.
Corporations are legal entities that are separate from their owners. To make a corporation, the owners specify the governing rules for the running of the business in a contract termed as the articles of incorporation. They submit the articles to the government of the state where the corporation is formed, and the state issues a charter which makes the separate legal entity.
Important Points for Capital Market Authority Apart from the above roles, CMA can assume the given steps to encourage progress of stock exchanges in US or other countries.
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