Introductory Business Law CLEP Prep Practice Exam

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Prepare for the Introductory Business Law CLEP Exam. Study with flashcards and multiple choice questions, each question comes with hints and explanations. Ace your exam with confidence!

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What type of organization does not have officers or directors?

  1. Corporation

  2. Partnership

  3. Sole Proprietorship

  4. Limited Liability Company

The correct answer is: Sole Proprietorship

A sole proprietorship is the only type of organization that does not have officers or directors. While corporations have a board of directors who are elected to manage the business and officers who carry out their directives, partnerships have both general and limited partners who act as directors and officers respectively. In a limited liability company, there are managers who oversee the business and members who have ownership and decision-making power. In contrast, a sole proprietorship is solely owned and managed by an individual without the need for officers or directors.

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