The difficulty and costs involved in maintaining the legal form of a business relates to
A)the personal liability of the business owner.
B)the complexity and organizational costs in setting up and maintaining an entity.
C)the control of the business.
D)the ability of the business to raise capital.

Question

Quizplus · Accepted Answer

Maintaining the legal form of a business can be complex and costly in terms of organizational costs and legal requirements. It involves complying with regulations, filing taxes, and maintaining proper documentation, which can be time-consuming and expensive. This is why many small business owners opt for simpler legal structures, such as sole proprietorships or partnerships, where they are personally liable for the business's debts but have fewer legal requirements to meet.

The Difficulty and Costs Involved in Maintaining the Legal Form