In terms of organizational costs, which of the following sequences is generally correct, moving from lowest to highest 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

Sole proprietorship is the least costly form of organization since it involves only one owner, followed by general partnership, which involves sharing of profits and losses between two or more owners. Limited partnership and corporation are generally more costly due to legal and administrative requirements such as formal registration, taxation, and governance structures. Therefore, the correct sequence from lowest to highest costs is Sole proprietorship, general partnership, limited partnership, corporation, making option B the best choice.

In Terms of Organizational Costs, Which of the Following Sequences