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

Question

Quizplus · Accepted Answer

The most difficult and expensive business organization to form is a corporation as it requires filing articles of incorporation and paying fees. Partnership is next because it may require a partnership agreement and registering with the state. Sole proprietorship is the easiest and least expensive as it does not require any formal registration or documents. Therefore, the correct order from most difficult and expensive to least is corporation, partnership, sole proprietorship.

The Order of Difficulty and Expense, from Most to Least