Question

DDX Co. is a short-haul trucking company. Juan owned 1,000 shares of DDX stock. With research, he found a better investment opportunity and sold his entire holding of DDX to another investor.This an example of: proprietorship, LLC/LLP, corporation, or partnership?

Answer 1

Answer and Explanation:

This is an example of corporation. Corporation is a legal entity wherein it goes public and offers its shares for ownership and trading in the primary and secondary market. Corporation is public limited company and has a board consisting of executives and CEO. Whereas, the shareholders do not interfere with the management decisions they are only concerned with their dividends.

In this case, Juan owned 1000 shares of DDX. DDX is a corporation because it is able to offers its shares to the general public and allows trading of shares for ownership.