Introductory Business Law CLEP Prep Practice Exam

A joint venture is a business agreement between two or more parties for a specific project or goal. It is not a term used to describe a group of people who are allowed to sue or be sued as one entity. A partnership is a business structure where two or more individuals own and operate a business together. While the partners may share responsibility and liability for the business, they do not have the same legal status as a corporation. A class action is a type of lawsuit where a group of people with similar grievances against a company or organization collectively bring a case to court. This is not the term used to describe a group of people who are allowed to sue or be sued as one entity. A corporation is a legal entity that is separate from its owners and can sue or be sued in its own name. This is the correct answer because it describes the term used for a group of people who