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  • Exam Code: C_TS4C_2021
  • Exam Name: SAP Certified Application Associate - SAP S/4HANA Cloud, essentials edition implementation with SAP Activate Exam

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NEW QUESTION: 1
In which type of business entity is the entire ownership interest most freely transferable?
A. Limited liability company.
B. Limited partnership.
C. General partnership.
D. Corporation.
Answer: D
Explanation:
Choice "c" is correct. Among the business entities listed, entire ownership interests are most freely
transferable in a corporation. Unless transferability is restricted by contract (restricted shares or voting
trusts or voting agreements), there are no restrictions on the sale of corporate stock (the common stock
represents the stockholders' ownership interest). The right to transfer ownership interests freely is one of
the advantages of the corporate form of business. Choice "a" is incorrect. A general partner in a general
partnership may assign his or her right to receive profits or surplus. A general partner cannot assign his
interest and confer partnership status on the assignee without unanimous consent of all other partners.
Choice "b" is incorrect. Both general partners and limited partners in a limited partnership may assign the
right to receive profits and surplus. Neither general nor limited partners can confer general or limited
partnership status on the assignee without the unanimous consent of all general and all limited partners.
Choice "d" is incorrect. In most states, limited liability company (LLC) members may not sell and confer
ownership interest without the consent of all LLC members.

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