A factor which distinguishes the corporate form of organization from a sole proprietorship or partnership is that a corporation is organized for the purpose of making a profit. corporation is subject to more federal and state government regulations. corporation is an accounting economic entity. corporation's temporary accounts are closed at the end of the accounting period.

Question

Business

Alonso Nash

29 August, 14:45

A factor which distinguishes the corporate form of organization from a sole proprietorship or partnership is that a corporation is organized for the purpose of making a profit. corporation is subject to more federal and state government regulations. corporation is an accounting economic entity. corporation's temporary accounts are closed at the end of the accounting period.

+3

Answers (1)

Know the Answer?

Rodrigo Pearson · Answer 1

Option B - A corporation is subject to more federal and state government regulations

Explanation:

Option A is incorrect because not only corporation is organized to make profits but also sole proprietorship business or partnership businesses want to make profits. Perhaps, all types of businesses want to make a profit.

Option C is also wrong because all types of entities are accounting economic entities as they have profits and losses.

Option D is incorrect as in each types of organizations, temporary accounts should be closed.

Option B is correct because corporation needs more regulations while sole proprietorship businesses are easy to form. Although partnership businesses are slightly hard to establish, those businesses do not require complicated federal and state authorization.