Which of the following is a direct factor that effects the selection of form adopted for a business?
A) The extent to which a business owner wishes to attain control of the business
B) The expected profits or losses arising from the business
C) The perceived risk associated with the business
D) The relationship that the owner would have with partners or investors
E) The subgroups of the total population that will behave the same way in the marketplace

Question

Quizplus · Accepted Answer

The expected profits or losses arising from the business is a direct factor that affects the selection of form adopted for a business. The level of profits or losses that a business is expected to generate will influence the form of business that the owner will choose. For instance, a business that is expected to generate high profits will be more likely to adopt a form of business such as a corporation that can raise capital through issuing shares, unlike a sole proprietorship.

Which of the Following Is a Direct Factor That Effects