Businesses that are owned by many investors who buy shares of stock.

• A. Monarchy
• B. Sole Proprietorship
• C. Corporation
• D. Partnership

Answer: (C)

Ownership by many investors who buy shares of stock describes a corporation. A corporation is a separate legal entity from its owners, who hold ownership through shares of stock. Those shares can be sold to many people, allowing the company to raise large amounts of capital without any one person managing daily operations. This structure also provides limited liability, meaning shareholders aren’t personally responsible for the company’s debts beyond their investment. In American history, corporations powered the rapid expansion of industries like railroads, steel, and oil because they could attract widespread investment and keep running beyond the involvement of any single founder. Monarchy is a form of government, not a business form. A sole proprietorship is owned by one person with unlimited personal liability. A partnership involves multiple owners but does not issue stock and lacks the same corporate legal structure and liability protections.