Which organization type requires at least two people to be considered legal?

Prepare for the NASCLA Accredited Exam with flashcards and multiple choice questions, each featuring hints and explanations. Excel in your exam!

A partnership is defined as a business arrangement where two or more individuals share ownership and management responsibilities. To legally constitute a partnership, it is essential to have at least two partners, as the name implies. This structure allows partners to combine their skills, resources, and efforts to achieve common business goals.

In contrast, a sole proprietorship is owned by a single individual and does not require additional partners. A corporation is a more complex structure that can operate with one or more shareholders. While a joint venture can be formed by two or more parties, it is typically a temporary arrangement for a specific project rather than a permanent business structure like a partnership. Therefore, the requirement of having at least two individuals is specific to partnerships, making it the correct answer in this context.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy