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ARE 5.0 PRACTICE MANAGEMENT EXAM 2025 QUESTIONS AND ANSWERS Sole Proprietorship - ....ANSWER ...-The business is owned by an individual General Partnership - ....ANSWER ...-Two or more people (general partners) share in the management, profits and risk of the business Limited Partnership - ....ANSWER ...-Has at least one general partner (invests in the business, manages it and are financially responsible for it) and at least one limited partner (investor who receives a portion of the profits but has no say in the management of the company) C Corporation - ....ANSWER ...-An association of individuals (stockholders, directors and officers) that exists as a legal entity apart from its members Stockholders - ....ANSWER ...-Owners of the corporation in proportion to the number of shares they own Directors - ....ANSWER ...-Have the fiduciary duty to act in the best interest of the stockholders and are responsible for broad policy decisions Officers - ....ANSWER ...-Carry out the day-to-day management of the corporation ...©️ 2025, ALL RIGHTS RESERVED 1