Oxford Matura Trainer PRACA Practice Exam

What term refers to a large company or business entity?

1. Private entity

2. Corporation

3. Small business

4. Start-up

The correct answer is: Corporation

The term that refers to a large company or business entity is "corporation." A corporation is a specific legal structure that allows a business to operate as an independent entity, separate from its owners. This structure provides limited liability protection to its shareholders, meaning the owners are not personally responsible for the corporation's debts. Corporations can raise capital more easily through the sale of stock and often have a more complex organizational structure compared to smaller business entities. In contrast, a private entity usually refers to any business that is privately owned, which can vary in size and does not necessarily imply a large organization. Small businesses are typically characterized by a limited number of employees and lower revenue, while start-ups are newly established ventures often looking to create a scalable business model. These alternatives do not inherently encompass large businesses, which is why "corporation" is the most accurate term in this context.