Use this financial statement to answer the following question: This business must be organized as a ________.
A)sole proprietorship
B)partnership
C)corporation
D)Two of these are possible.

Question

Use this financial statement to answer the following question:  This business must be organized as a ________.
A)sole proprietorship 
B)partnership 
C)corporation 
D)Two of these are possible.

Quizplus · Accepted Answer

The presence of both common stock and retained earnings on the balance sheet indicates that this business is organized as a corporation. Sole proprietorships and partnerships do not issue stock, while corporations do.

Use This Financial Statement to Answer the Following Question