Ask Question
BusinessBusiness
5 August, 21:35

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?

+2
Answers (1)
  1. 5 August, 23:56
    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?
Find 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 you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
The intuition behind the MSE metric to evaluate old forecasts is to sum up the forecast errors. to sum up the squared forecast errors. to sum up the absolute values of the forecast errors. to average the squared forecast errors.
Answers (1)
A company just paid a $2 dividend per share. The dividend growth rate is expected to be constant at 10% for 2 years, after which dividends are expected to grow at a rate of 3% forever.
Answers (1)
What annual percent growth rate is equivalent to a continuous percent growth rate of 15 %?
Answers (1)
According to Wallach, what is short-termism, and why is it a problem? What is "longpath" and why did Wallach develop the concept? Briefly discuss each of the three ways of thinking that Wallach describes.
Answers (1)
If the exchange rate between the European euro and the U. S. dollar is 1 to 1.2, which of the following is true? A. A $5 item costs twice as much in euros. B. A $5 item costs less than five euros. C. A $5 item costs half as much in euros. D.
Answers (1)
New Questions in Business
Lindley Enterprises sells hand-woven rugs. Paige Corporation is a regular customer of Lindley. On June 30, Paige purchased 500 rugs from Lindley for $400,000 on credit. On August 15, Paige paid Lindley in full on its $400,000 balance.
Answers (1)
A developing country might choose to maintain a trade deficit to?
Answers (1)
In which stage of the product life cycle should product strategy focus on process modifications as the product is being "fine-tuned" for the market?
Answers (1)
In the past 5 years, the cost of producing 4K televisions has decreased. At the same time, many consumers are opting to watch television programs on their smartphones, tablets or laptops.
Answers (1)
Bandar Industries Berhad of Malaysia manufactures sporting equipment. One of the company's products, a football helmet for the North American market, requires a special plastic.
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?