James and Nicholas are roommates at university and plan to run a painting business for the summer.Which is the most likely form of organization of their business?
A)A proprietorship
B)A partnership
C)A corporation
D)An income trust

Question

Quizplus · Accepted Answer

James and Nicholas are two individuals who are planning to run a business together. Hence, the most likely form of organization for their business is a partnership. A proprietorship would be suitable if only one of them will own and run the business, while a corporation is more complex and involves many shareholders. An income trust is not a form of organization, but rather a type of investment vehicle.

James and Nicholas Are Roommates at University and Plan to Run