The order of difficulty and expense, from most to least, when forming a business organisation is as follows:
A) corporation, sole traders, partnership.
B) corporation, partnership, sole traders.
C) partnership, corporation, sole trader.
D) partnership, sole trader, partnership.
E) sole trader, partnership, corporation.

Question

Quizplus · Accepted Answer

Forming a corporation is the most difficult and expensive due to legal and regulatory requirements, including formal registration and ongoing compliance requirements. A partnership typically requires a written agreement, but is generally easier and less expensive to set up than a corporation. Sole proprietorships (sole traders) are the easiest and least expensive to establish, as they have no formal structure or registration requirements, although there may be local business license or permit requirements to comply with. Therefore, the correct order of difficulty and expense is corporation, partnership, sole traders.

The Order of Difficulty and Expense, from Most to Least