In terms of organisational 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

Generally, a sole proprietorship has the lowest organisational costs as it is the easiest and quickest to set up. A general partnership requires slightly more organisation and may require a legal agreement between partners. A limited partnership usually involves registering with the state and creating legal agreements between partners, making it more costly than a general partnership. Finally, a corporation usually involves the highest organisational costs as it requires formal incorporation and compliance with legal and regulatory requirements.

In Terms of Organisational Costs, Which of the Following Sequences