Factors that influence the choice of a particular form of business organization may include:

Question

Quizplus · Accepted Answer

All of the factors listed can play a role in the choice of a particular form of business organization. Capital requirements can influence whether a business owner decides to incorporate or form a partnership. Duration can affect whether a sole proprietorship or a corporation is more appropriate. Tax rates can impact the decision to form an LLC or a C-corporation. Transferability of interests may be a consideration in choosing a specific form of business organization. Therefore, all of the choices listed can influence the choice of a particular form of business organization.

Factors That Influence the Choice of a Particular Form of Business