Which forms of organization are free of initial legal requirements?
A) Sole proprietorship
B) General partnership
C) Corporation
D) Both A and B

Question

Quizplus · Accepted Answer

Both sole proprietorship and general partnership are free of initial legal requirements, meaning they can be formed without any formal legal registration or documentation. This makes them a good choice for small businesses or individuals looking for a simple and easy-to-create business structure. However, it's important to note that both forms of organization have unlimited personal liability for the owners, which means that their personal assets are at risk if the business faces any legal or financial issues.

Which Forms of Organization Are Free of Initial Legal Requirements