Ask Question
BusinessBusiness
30 May, 13:27

If the corporate form of business organization has so many advantages over the sole proprietorship, why is it so common for small businesses to initially be formed as sole proprietorships?

+4
Answers (1)
  1. 30 May, 16:40
    0
    Answer and explanation:

    A Sole Proprietorship is a type of business with a single owner who pays income tax over the revenues. The reason why they are more common compared to Corporations relies on the fact that a Sole Proprietorship is less regulated by the government so it can be opened and dissolved easier.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “If the corporate form of business organization has so many advantages over the sole proprietorship, why is it so common for small ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers
You Might be Interested in
The determination of an exchange price acceptable to both the buyer and the seller of a product is called
Answers (1)
For electronically deposited funds, such as an employee's direct deposit, when must bank make those funds available to the employee?
Answers (1)
What would be the first thing you would do if you are burned by a chemical while performing a lab experiment?
Answers (2)
Which federal law, passed in 1969, requires creditors to state the cost of borrowing as a dollar amount?
Answers (1)
Falling Down Co.'s relevant range of activity is 55,000 units to 65,000 units. When it produces and sells 60,000 units, its costs per unit are as follows: Per unit cost: Direct materials $1.80 Direct labor $5.90 Variable manufacturing overhead $1.
Answers (1)
New Questions in Business
Alcott's preferred stock pays a dividend of $1.00 per quarter. If the price of the stock is $45.00, what is its nominal (not effective) annual rate of return?
Answers (1)
A customer, age 51, has a 20 year investment time horizon, a moderate risk tolerance, and is looking for investments that provide both income and growth. The best recommendation would be:
Answers (1)
Today, you are meeting with your team of four students, Shawna, and Alfonso Alvarez, the Store Manager for your local Goodwill store. You want to do some planning for the upcoming year.
Answers (1)
A company's Accounts Receivable balance at its December 31 year-end is $125,650, and its Allowance for Doubtful Accounts has a credit balance of $328 before year-end adjustment. Its net sales are $572,300.
Answers (1)
The account type and normal balance of unearned revenue would be a. expense, debit b. revenue, credit c. asset, debit d. liability, credit
Answers (1)
Home » Business » If the corporate form of business organization has so many advantages over the sole proprietorship, why is it so common for small businesses to initially be formed as sole proprietorships?
Sign Up Forgot Password?