Question

A​ ________ is a separate entity and in that capacity can borrow from​ banks, bondholders, preferred​ stockholders, and common shareholders.
A. government organization

B. sole proprietorship

C. public company

D. limited partnership

Answer 1

Answer:

C

Explanation:

A public company a corporate sole with the right to borrow from all sources to conduct its business or raise equity from the stock market.

Answer 2

Answer:

C. public company 

Explanation:

Characteristics of a public company includes :

1. A public company is a separate legal entity.

2. Public companies can issue shares. Individuals that purchase shares in a public company are shareholders and are referred to as the owners of the public company. They usually elect board of directors to manage the company.

A preferred stockholder is different from a common shareholder in that a preferred shareholder doesn't have voting rights and he's paid dividends first before the common shareholder.

3. A public company can issue bonds and borrow from banks.

Governments can issue bonds but not shares.

A sole proprietorship is not a separate legal entity and can't issue bonds or shares.

A limited partnership don't issue shares or bonds.