In terms of the costs to organize each,which of the following sequences is correct,moving from highest to lowest cost?
A) general partnership, sole proprietorship, limited partnership, corporation
B) sole proprietorship, general partnership, limited partnership, corporation
C) corporation, limited partnership, general partnership, sole proprietorship
D) sole proprietorship, general partnership, corporation, limited partnership

Question

Quizplus · Accepted Answer

Corporations have the highest costs associated with organization due to the legal and regulatory requirements involved. Limited partnerships and general partnerships also involve legal agreements and documentation, making them more expensive to organize than a sole proprietorship. Therefore, the correct sequence from highest to lowest cost would be corporation, limited partnership, general partnership, and sole proprietorship. Option C is the only one that follows this sequence.

In Terms of the Costs to Organize Each,which of the Following