Business Organization Formation Difficulty and Expense

What is the order of difficulty and expense when forming a business organization?

a. corporation, sole proprietorship, partnership

b. corporation, partnership, sole proprietorship

c. partnership, corporation, sole proprietorship

d. partnership, sole proprietorship, partnership

e. sole proprietorship, partnership, corporation.

Final answer:

The order of difficulty and expense in forming a Business Structures is: corporation, sole proprietorship, partnership.

Explanation:

The correct order of difficulty and expense, from most to least, when forming a business organization is: a. corporation, sole proprietorship, partnership.

A corporation is the most complex form of business organization. It requires more legal and bureaucratic procedures, including permission from the national and state governments to incorporate. Additionally, forming a corporation often involves higher expenses due to fees and taxes. In contrast, a sole proprietorship is the simplest and least expensive form of business organization. It is owned and operated by one person, and there are no special taxes or legal requirements.

A partnership falls in between, where two or more individuals share the ownership and responsibility of the business. While it is less complex than a corporation, it may still involve legal agreements and potential conflicts.