Quarrels among business associates have become common.The associates quarrel over what products the firm should sell, division of authority, selection of personnel, whether to bring family members into the business, whether to expand, and who is contributing most to the firm's success.Such feuding, which damages business relationships, occurs most frequently in what form of business?
A) partnerships
B) cooperatives
C) corporations
D) sole proprietorships
E) S-corporations

Question

Quizplus · Accepted Answer

Partnerships involve multiple owners who share decision-making authority and often have different ideas and preferences for the direction of the business. This can lead to disagreements and conflicts which can damage the partnership and the business. In a corporation, decision-making authority is typically more centralized and divided between the board of directors and executive management, reducing the likelihood of internal conflict. Sole proprietorships and S-corporations have only one owner, making internal conflict less likely, and cooperatives are typically structured in a way that emphasizes cooperation and consensus-building among members.

Quarrels Among Business Associates Have Become Common